Prøve GULL - Gratis
Select lenders shine in gold rush
Mint Bangalore
|February 17, 2025
An outlier Muthoot Finance has outperformed peers in FY25 so far, gaining from higher exposure to gold loans.
Gold is shining bright, with price above ₹80,000 per 10 gm. Rising price of the yellow metal means higher value of collateral for gold lenders and a boost to their assets under management (AUM). Muthoot Finance Ltd is the best placed. It's gold loan AUM surged 34% on-year and 8% sequentially in the December quarter (Q3FY25).
Higher gold prices and new customer additions led by transformation of Muthoot Money branches for gold loan disbursement helped.
It has maintained its AUM growth guidance for FY25 at 25%—a figure that was revised upwards from 15% in Q2.
In general, to beat cyclicality in gold lending, Muthoot and its peers are diversifying into microfinance (MFI), and vehicle and housing financing.
However, Muthoot's relatively higher exposure to gold lending (gold loan AUM is 84% of consolidated AUM) than rivals augurs well due to tailwinds from higher gold prices, subsiding competition from non-bank financial companies (NBFCs) and branch expansions.
Denne historien er fra February 17, 2025-utgaven av Mint Bangalore.
Abonner på Magzter GOLD for å få tilgang til tusenvis av kuraterte premiumhistorier og over 9000 magasiner og aviser.
Allerede abonnent? Logg på
FLERE HISTORIER FRA Mint Bangalore
Mint Bangalore
INSIDE INDIAMART'S FIGHT FOR AI VISIBILITY
Sidelined by bots in the age of AI search, IndiaMART is fighting a legal battle to be discoverable online
7 mins
March 11, 2026
Mint Bangalore
Airlines reviewing growth plans as war triggers fuel surges
US president insists operation was ahead of schedule, looks to shore up investors concerned about energy prices
2 mins
March 11, 2026
Mint Bangalore
India relaxes curbs on Chinese FDI, but no board seat, management role
FROM PAGE 1
2 mins
March 11, 2026
Mint Bangalore
War fuels surge in crude derivative trading on MCX
Traders have piled into crude oil derivatives on the Multi Commodity Exchange (MCX) as the Iran-US war triggered sharp swings in global oil prices, pushing trading volumes to nearly three times pre-war levels.
2 mins
March 11, 2026
Mint Bangalore
Fertility on ice: The financial reality of egg freezing plans
Experts advise setting aside ₹3-5 lakh and consider egg freezing as a mid-term financial goal
5 mins
March 11, 2026
Mint Bangalore
Subsidy raj: Why an ancient grain dole should haunt us
In 123 BCE, Gaius Gracchus passed the lex frumentaria, a law mandating that the Roman state sell grain to citizens at a fixed below-market price.
3 mins
March 11, 2026
Mint Bangalore
Sonata files bankruptcy plea in the US against retail client
Sonata Software Ltd has filed an involuntary bankruptcy petition in a US court against a retail client over unpaid dues of about $10.65 million, an amount equivalent to roughly 6.6% of the company’s incremental revenue last fiscal.
2 mins
March 11, 2026
Mint Bangalore
Refiners raise LPG output by 10%, tie up supply from US
Indian refiners have ramped up daily domestic production of liquefied petroleum gas (LPG) by around 10% in the past few days in the face of a supply squeeze from the US-Iran war, two people aware of the development said.
1 min
March 11, 2026
Mint Bangalore
India relaxes curbs on FDI from China
Automatic nod for up to 10%; quick clearance in specific sectors
1 min
March 11, 2026
Mint Bangalore
More farmers may seek MSP for wheat as record output looms
A looming record harvest and the war in West Asia are likely to spur more wheat farmers to seek higher support prices via government procurement as the staple fetches 15% lower than last year in the open market, according to farmers, government officials and experts.
1 mins
March 11, 2026
Listen
Translate
Change font size