The consolidated assets under management of Muthoot Finance have grown 25% Y-o-Y to Rs. 89,079 crores in FY24 as against Rs. 71,497 crores last year. During the Q4 of FY 24, consolidated loan assets under management increased by 8%. The consolidated profit after tax of the NBFC increased by 22% Y-o-Y to Rs. 4,468 crores as against Rs. 3,670 crores last year.
George Jacob Muthoot, chairman of Muthoot Finance said “Our standalone loan assets under management too increased by 20%. The contribution of subsidiaries on loan assets increased to 15% from 12% last year. The contribution of subsidiaries in the consolidated profit after tax also increased to 10% from 6% last year.”
He added “As a diversified financial services group, FY24 was a year of transformation for us. Apart from consciously pivoting our efforts towards growing our non-gold loan book, we also focused on strengthening our digital strategies for a transformative growth across our product portfolio. Despite the various industry hiccups, we have continued to maintain our position as a leader in the gold loan industry and capitalized on the strong growth opportunities in affordable housing, microfinance, personal loan, small business loan, and vehicle finance. Further robust domestic consumption, growing middle class segment and rising aspirations provide ample opportunities for future growth.”The chairman further said “We embark FY25 on a positive note and shall continue on our vision to grow the share of non-gold loan subsidiaries to 18%-20% in the next 5 years.”
George Alexander Muthoot, Managing Director said, “This year, we achieved the highest ever gold loan advance to new customers of Rs 16,415 crores, reinforcing our position as a trusted partner in the gold loan industry. Complementing our core gold loan business, our non-gold loan offerings continued to gain traction, with our microfinance loans, personal loans, and home loans playing a pivotal role in diversifying our overall loan book.”
The housing finance arm achieved disbursements of Rs 815 crores in FY24 as against Rs. 223 crores in FY 23. The micro finance arm also witnessed upward trend, with increased Loan AUM by 62% YoY reaching Rs. 10,023 crores and Profit after Tax by 161% YoY of Rs. 340 crores.
“As part of our transformational journey, in FY24, we also focused on boosting our digital business and tapping new tech-savvy millennials and Gen Z customers. Our phygital strategy has yielded positive results with critical infrastructure already in place to move remaining gold and non-gold customers to digital channels who were hitherto transacting in cash. We are confident that the impact of regulatory norm of Rs.20,000 cash disbursal limit on our business and volumes will be limited since it is an industry wide move.”
