homebusiness NewsMuthoot Finance aims for 15% AUM growth in FY24, to increase focus on non gold portfolio
Muthoot Finance aims for 15% AUM growth in FY24, to increase focus on non-gold portfolio
George Alexander Muthoot, the company's Managing Director said while the competition has expanded the market and slowed down the pace of growth for Muthoot, the company's market share remains intact.
George Alexander Muthoot, Managing Director of Muthoot Finance said the company is expecting a growth of around 15% in its asset under management (AUM) in the current financial year.
Muthoot said while competition from banks has led to the growth rate slowing down from 20-25% earlier, the gold financing company has not lost any market share. Muthoot is confident of maintaining a net interest margin of around 10%.
The company plans to focus on catering to lower-ticket customers, in contrast to banks that predominantly target larger clients, Muthoot noted. The recent market trends suggest an uptick in demand for lower ticket-sized gold loans, particularly in the range of ₹1 lakh, he said, adding that Muthoot's extensive branch network can come in handy in serving a the needs of smaller towns and cities where customer tend to be sticky.
The country's largest gold loan company plans to also gradually increase the non-gold loan portfolio to around 20% of the total AUM from around 8% now.
Muthoot Finance shares have gained over 36% year to date. The company's market capitalisation is ₹59,897 crore.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Dec 28, 2023 5:44 PM IST
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