Muthoot Finance Looks To Make The Most From Rising Gold Prices
Muthoot Finance’s gold business assets may grow by 20 percent in the ongoing fiscal, MD George Alexander Muthoot says.
Muthoot Finance Ltd. looks to make the most from the latest rally in gold prices.
With gold prices surging to a six-year high, Muthoot Finance Managing Director George Alexander Muthoot told BloombergQuint in an interview that the demand for gold loans would improve as would their collateral values.
Demand for gold loans have been rising since January following the shadow banking crisis, with the election season only posing a minor blip, Muthoot said.
“The risk on gold (pledged as security) loans is much lesser now,” Muthoot said, adding the high gold prices have become “talk of the town” today. That, he said, has spurred people to bring more jewellery to the market.
Muthoot Finance expects its net assets under management to grow by 15 percent in the ongoing financial year. We expect our gold business’ assets to grow by 20 percent, he said.
Watch the full interview here: