Muthoot Finance targets to grow gold loan AUM 10 per cent in FY24
MUMBAI: After witnessing single-digit growth in its gold loan business, Muthoot Finance, India’s largest gold financing company in terms of loan portfolio, is targeting double-digit growth in next financial year 2023-24.With Asset Under Management (AUM) of I57,731 crore , it aims to grow its gold loan AUM by 10% in the next financial year. It is expecting 5% growth in gold loan AUM in 2022-23.
“We expect to end the current financial year with around 5% growth in gold loans. Next year we should see double digit growth in the gold loan business. We expect 10% growth in gold loan AUM in the next financial year,” George Alexander Muthoot, MD, Muthoot Finance told this newspaper.Gold loan companies have seen muted growth over the past few years due to increased competition from banks. The lenders have increased the focus on gold loans in order to diversify their loan portfolio.
It is aiming to diversify its business and the group is now pushing non-gold business. Currently the total AUM of the Group is 65,085 in which the share of its subsidiaries is around 13%. In the non-gold segment, the group has presence in home, vehicle finance, SME lending, personal loans and microfinance. The management wants the share of its subsidiaries to rise to 20% in the next three years.
The share of its subsidiaries was 10% in total AUM a year before. “Before COVID-19, we started new business verticals- microfinance, personal loans, MSME finance, vehicle finance, housing finance. During COVID-19 we went low on these verticals and now we have resumed our focus on these verticals.