Image Credits: Muthoot Finance
Muthoot Finance Ltd. (MFIN) is a gold loan finance company and the largest gold loan NBFC in the country.
The company reported a 22% hike in standalone profit after excluding the tax of ₹996 crores for 3 months up to March 2021. While looking at the whole year, Muthoot Finance Ltd. had a standalone net profit of ₹3,722 crores which was a 23% increase as against t ₹3,018 crores in the fiscal year 2020 and a standalone profit of ₹815 crores after-tax the previous year.
The managing director of Muthoot Finance, George Alexander Muthoot mentioned that during the pandemic many people have wanted to restart their businesses which needed quick funding, and that caused an increased demand for gold loans.
Muthoot Finance was equipped to increase its asset under management (AUM) in the gold loan segment by 27% in the Fiscal Year of 2021 compared to a growth of 22% in the year before. The company expects a 15% growth in asset under management (AUM) in the fiscal year of 2021-22.
Even though the company has had its downfalls in the finance subsidiary of the company, Muthoot Homefin, with a dip in net profit of ₹13 crores in Fiscal Year 2021 as against ₹32 crores in the previous year, it remains strong and is bulking profits in its other subsidiaries.