Muthoot Finance Ltd., the Kerala-based non-banking financial company (NBFC), announced on Friday, March 14, that its Assets Under Management (AUM) from the gold loan business has surpassed ₹1 lakh crore. This milestone highlights the company’s significant growth in the gold loan segment.
As of the end of December 2024, Muthoot Finance’s gold loan AUM stood at ₹92,964 crore, reflecting a 34.3% year-on-year growth and a 7.9% increase compared to the previous quarter. The company’s overall AUM for the same period grew by 37% year-on-year to ₹97,487 crore. The gold loan business constitutes the majority of the company’s total AUM, underscoring its central role in Muthoot Finance’s operations.
Despite the positive news regarding its gold loan business, Muthoot Finance’s shares faced a setback on Thursday. The company was thrust into the spotlight after Muthoot Insurance Brokers, a subsidiary, reported a fraud involving its CEO and a former Muthoot Finance employee. The fraud, amounting to ₹11.92 crore, occurred between April 2023 and November 2024 and involved the misappropriation of rewards received from insurance companies.
Although the company’s stock price recovered from its lowest point on Thursday, it ultimately ended the day with a loss of 0.8%, closing at ₹2,191. The stock is currently 6% below its 52-week high.
Investors will be closely watching Muthoot Finance’s performance as it continues to navigate both growth in its core business and the challenges posed by the recent fraud incident.
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