Muthoot Finance Targets 15% AUM Growth In Gold Loans For FY20
Muthoot Finance Ltd. expects assets under management of its gold loan vertical to grow 15 percent in financial year 2019-20.
“We have targeted around 15 percent growth for the gold business and that depends upon the pick up of economic activities in the country,” Managing Director George Alexander Muthoot told BloombergQuint in an interview. “We can expect a higher number if credit demand picks up.”
The company, he said, raised funds from banks without any hassle as it collects collateral in the form of gold, thereby resulting in fewer bad loans in comparison to other non-bank lenders.
Key Highlights (Standalone, YoY)
- Net interest income up 3.4 percent at Rs 1,220.8 crore.
- Net profit rose 0.6 percent to Rs 511.5 crore.
The shares of the company rose as much as 5.3 percent to Rs 576.45 apiece in today’s trade.
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