Motilal Oswal: Muthoot Finance’s Gold Loan Business On Strong Footing  
An advertisement for Muthoot Finance Ltd. is displayed on a wall in a branch in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)  

Motilal Oswal: Muthoot Finance’s Gold Loan Business On Strong Footing  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

To get an update on business and sectoral trends, we interacted with Mr George Alexander Muthoot – Managing Director and Mr Oommen Mammen Chief Financial Officer of Muthoot Finance Ltd.

Here are the key insights from the discussion -

Despite increasing competition from banks, the company has witnessed robust growth in the past few months.

Given the short duration as well as low ticket size of the product, the absolute interest cost in rupee terms to the borrower does not increase much with higher yield; hence, players such as Muthoot Finance are able to compete with banks that offer much lower interest rates.

Click on the attachment to read the full report:

Motilal Oswal Muthoot Finance Management Call Update.pdf

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