Latest news with #GeorgeAlexanderMuthoot
&w=3840&q=100)
Business Standard
a day ago
- Business
- Business Standard
Muthoot Finance to inject ₹200 crore into home loan arm for growth
Gold loan firm Muthoot Finance plans to infuse Rs 200 crore into its housing finance subsidiary, Muthoot Homefin, for growth, said George Alexander Muthoot, MD and CEO of Muthoot Finance, in a telephonic interaction with Business Standard. Currently, the assets under management (AUM) of the home loan arm stand at Rs 3,096 crore in Q1 FY26, up from Rs 2,199 crore in Q1 FY25, registering a growth of 41 per cent. Muthoot also said that Belstar – the microfinance arm – will be diversified, as the Reserve Bank of India (RBI) reduced the qualifying assets criteria for microfinance institutions to 60 per cent. Belstar has also added 10 gold loan branches to diversify its loan book. Although collections and recoveries in the microfinance sector have returned to normal levels, a risk-based scoring model has been introduced as a new control measure to improve the quality of lending and to contain stress in the sector. "Earlier, [micro] loans were given left, right, and centre. Now, it is more responsible, and the focus is on giving loans to new customers," he added. Belstar's micro loan portfolio has decreased to Rs 7,500 crore in June 2025, from Rs 10,000 crore in April.
Business Standard
3 days ago
- Business
- Business Standard
Muthoot Finance dazzles after strong Q1 earnings
Muthoot Finance surged 11.05% to Rs 2788.25 after reporting robust earnings for the June quarter, buoyed by strong income growth and improved profitability. On a consolidated basis, net profit climbed 65% year-on-year to Rs 1,974.2 crore in Q1 FY26 from Rs 1,195.7 crore in Q1 FY25. Total income rose 44% YoY to Rs 6,485 crore in Q1 FY26 from Rs 4,492.4 crore a year ago. Muthoot Finance earns the bulk of its revenue from interest income, which rose 45% YoY to Rs 6,288 crore. Other income also saw an 88% increase to Rs 34.9 crore. Profit before tax stood at Rs 2,654 crore in Q1 FY26, up 61% from Rs 1,645.7 crore in Q1 FY25. Total expenses increased 35% YoY to Rs 3,831 crore from Rs 2,846.7 crore, driven by higher finance costs, which jumped 48% to Rs 2,354.9 crore, and employee benefit expenses, which were up 35% at Rs 696.5 crore. The groups consolidated gross loan assets stood at Rs 1,33,938 crore, up 37% YoY and 10% QoQ, with Muthoot Finance contributing Rs 1,17,141 crore and subsidiaries Rs 16,797 crore. During the quarter, consolidated loan assets under management increased by 10% of Rs 11,757 crore. On a standalone basis, Muthoot Finance (MFIN), Indias largest gold financing company in terms of loan portfolio, registered profit after tax of Rs 2,406 crore in Q1 FY26 as against Rs 1,079 crore in Q1 FY25, an increase of 90% YoY. Loan AUM stood at Rs 1,20,031 crore in Q1 FY26 as compared to Rs. 84,324 crore in Q1 FY25, registering a growth of 42% YoY. During the quarter, loan assets increased by Rs 11,383 crore registering a growth of 10%. Gold Loan assets increased by Rs 32,272 crore registering a growth of 40% YoY. George Jacob Muthoot, chairman said "As Indian economy advances, demand for quick, reliable, and affordable credit is rising and gold loans remain a critical enabler in this space. We are also accelerating our digital transformation journey to ensure faster, more seamless credit access for millions of customers across the country. Strategic investments in technology and innovation are enhancing operational efficiency and customer experience. With this momentum, we are confident of sustaining strong growth in the quarters ahead." George Alexander Muthoot, Managing Director, said, "Looking ahead, we are accelerating our efforts to digitally enable our gold loan offerings, making credit access faster, more seamless, and more inclusive. Our technology investments are already enhancing customer experience, reducing turnaround times, and strengthening operational efficiency. The recent RBI guidelines on gold loans will bring greater transparency and further streamline the lending process, while the recent interest rate cuts create a more favourable credit environment. With these supportive tailwinds, and our continued focus on innovation and service excellence, we are well-positioned to sustain strong growth through FY26 and beyond." The company offers easy access to credit for individuals who own gold jewellery but may face delays in accessing formal lending channels. Its core offering gold loans secured against gold jewellery supports individuals and small businesses with essential short-term liquidity. In addition, it also provides a range of financial services through subsidiaries, including personal and business loans, insurance distribution and money transfer services.
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Muthoot Fin hits record high after posting Q1 results; Buy, sell or hold?
Muthoot Finance shares rose 11.4 per cent on BSE, recording an all-time high at ₹2,797 per share. The buying on the counter came after the company released its first quarter (Q1FY26) results on Wednesday, post-market hours. At 9:54 AM, Muthoot Finance's share price was trading 10.16 per cent higher at ₹2,765.8 per share. In comparison, BSE Sensex rose 0.18 per cent at 80,686.13. Muthoot Finance Q1 results recap Muthoot Finance's net profit surged 65 per cent during the April-June quarter (Q1) of FY26 at ₹19,742 crore, as compared to ₹11,957 crore a year ago. The company's interest income grew 45 per cent to ₹62,880 crore, as against ₹43,483 crore year-on-year (Y-o-Y). However, its total expenses also shot up by 35 per cent to ₹38,310 crore, as against ₹28,467 crore a year ago. Gold loan disbursement to new customers as of June 30, 2025, was at ₹6,355 crore and the average gold loan asset under management per branch was at ₹23.21 crore. Gold prices hit multiple record highs during the quarter. This benefits gold financiers as higher prices increase the collateral value, allowing borrowers to secure larger loans for the same amount of gold. Additionally, tighter lending in the unsecured segment prompted people to shift to gold loans as an alternative source of funds, according to reports. Muthoot Finance's standalone loan assets under management rose 42 per cent year-on-year (Y-o-Y) to ₹1.2 trillion at the end of the quarter, and interest income jumped about 53 per cent to ₹5,592 crore. "We are well-positioned to sustain strong growth through fiscal 2026 and beyond," Managing Director George Alexander Muthoot said in a statement. The company also approved equity infusion of ₹500 crore and ₹2 crore in its units, Muthoot Money and Muthoot Homefin, respectively. ALSO READ | Should you buy, sell or hold Muthoot Finance shares? Nuvama Institutional Equities has retained a 'Buy' on Muthoot Finance and has raised the target to ₹2,993 from ₹2,625. Muthoot reported a strong Q1FY26 unlike peers, with an all-round beat, according to brokerage. It added: Even without recoveries, yield was stable versus a decrease for peers. The contribution of subsidiaries to gold loans is increasing. Meanwhile, Kranthi Bathini, director-equity strategy, WealthMills Securities, recommends 'holding' stock at current levels for a few more quarters, but given the kind of global uncertainty in the market, in the short term, there is nothing wrong with taking some profit from the table. Nitin Jain, Sr. research analyst, Bonanza has also suggested holding the stock as Muthoot Finance's exceptional Q1 performance, expanded reach, and robust fundamentals place it on firm ground for continued growth and the quarter marks clear evidence of the company's resilience and expansion in India's NBFC gold loan sector. He added: Investors should remain attentive to regulatory changes and gold price trends.
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Muthoot Fin hits record high after posting Q1 results; check key details
Muthoot Finance shares rose 11.4 per cent on BSE, recording an all-time high at ₹2,797 per share. The buying on the counter came after the company released its first quarter (Q1FY26) results on Wednesday, post-market hours. At 9:54 AM, Muthoot Finance's share price was trading 10.16 per cent higher at ₹2,765.8 per share. In comparison, BSE Sensex rose 0.18 per cent at 80,686.13. Muthoot Finance Q1 results recap Muthoot Finance's net profit surged 65 per cent during the April-June quarter (Q1) of FY26 at ₹19,742 crore, as compared to ₹11,957 crore a year ago. The company's interest income grew 45 per cent to ₹62,880 crore, as against ₹43,483 crore year-on-year (Y-o-Y). However, its total expenses also shot up by 35 per cent to ₹38,310 crore, as against ₹28,467 crore a year ago. Gold loan disbursement to new customers as of June 30, 2025, was at ₹6,355 crore and the average gold loan asset under management per branch was at ₹23.21 crore. Gold prices hit multiple record highs during the quarter. This benefits gold financiers as higher prices increase the collateral value, allowing borrowers to secure larger loans for the same amount of gold. Additionally, tighter lending in the unsecured segment prompted people to shift to gold loans as an alternative source of funds, according to reports. Muthoot Finance's standalone loan assets under management rose 42 per cent year-on-year (Y-o-Y) to ₹1.2 trillion at the end of the quarter, and interest income jumped about 53 per cent to ₹5,592 crore. "We are well-positioned to sustain strong growth through fiscal 2026 and beyond," Managing Director George Alexander Muthoot said in a statement. The company also approved equity infusion of ₹500 crore and ₹2 crore in its units, Muthoot Money and Muthoot Homefin, respectively. Nuvama Institutional Equities has retained a 'Buy' on Muthoot Finance and has raised the target to ₹2,993 from ₹2,625. Muthoot reported a strong Q1FY26 unlike peers, with an all-round beat, according to brokerage. It added: Even without recoveries, yield was stable versus a decrease for peers. The contribution of subsidiaries to gold loans is increasing.
Economic Times
3 days ago
- Business
- Economic Times
Muthoot Finance Q1 Results: Standalone profit surges 90% to Rs 2,046 crore on strong loan growth
Indian gold loan financier Muthoot Finance reported a bigger-than-expected 90% surge in first-quarter profit on Wednesday, aided by higher loan demand as prices of the precious metal soared. ADVERTISEMENT Muthoot Finance reported a standalone profit of Rs 2,046 crore ($233.91 million) for the April-June quarter, above analysts' estimate of Rs 1,624 crore, per data compiled by LSEG. Gold prices hit multiple record highs during the quarter. This benefits gold financiers as higher prices increase the collateral value, allowing borrowers to secure larger loans for the same amount of gold. Additionally, tighter lending in the unsecured segment prompted people to shift to gold loans as an alternative source of funds, analysts said. Muthoot Finance's standalone loan assets under management rose 42% year-on-year to 1.2 trillion rupees at the end of the quarter, and interest income jumped about 53% to 55.92 billion rupees. "We are well-positioned to sustain strong growth through fiscal 2026 and beyond," Managing Director George Alexander Muthoot said in a statement. ADVERTISEMENT The company also approved equity infusion of 5 billion rupees and 2 billion rupees in its units, Muthoot Money and Muthoot Homefin, respectively. Unlock 500+ Stock Recos on App (You can now subscribe to our ETMarkets WhatsApp channel)
