Muthoot Finance: The Only Gold Loan NBFC Recognized in RBI’s Upper Layer List for Three Consecutive Years
Varahi media.com online news, January 22nd, 2025: Muthoot Finance Ltd (MFIN), India’s leading gold financing company in terms of loan portfolio, has retained its position as the only gold loan
Varahi media.com online news, January 22nd, 2025: Muthoot Finance Ltd (MFIN), India’s leading gold financing company in terms of loan portfolio, has retained its position as the only gold loan Non-Banking Financial Company (NBFC) to be listed in the Reserve Bank of India’s (RBI) ‘Upper Layer’ for three consecutive years. The company first achieved this recognition in FY’23.
In Q2 FY25, Muthoot Finance marked a historic achievement by surpassing ₹1 lakh crore in consolidated loan assets under management. The company reported a net profit of ₹1,321 crore for the quarter, reflecting a 21% year-on-year growth, while its total revenue from operations soared by 36.7% to ₹4,928.8 crore.
The RBI classifies NBFCs into different layers based on their size, activities, and risk levels as part of its Scale Based Regulation (SBR) framework. The ‘Upper Layer’ category includes NBFCs that are subject to enhanced regulatory requirements, determined by a set of parameters and scoring criteria.
George Alexander Muthoot, Managing Director of Muthoot Finance, stated, “We are extremely proud to be recognized by the RBI for adhering to the highest standards of regulatory compliance while consistently delivering robust business growth.
As we continue to move forward, Muthoot Finance is committed to strengthening its leadership position in the gold loan industry. We aim to expand our portfolio with innovative products and services to cater to the diverse financial needs of our customers.
NBFCs play a crucial role in fostering financial inclusion, providing access to credit for a large section of the population. We are particularly focused on the MSME sector, offering a wide range of solutions to support this segment.
Notably, 66% of women gold loan borrowers utilize the funds for their small or micro-businesses, which are vital to economic growth. We are confident that we will maintain our strong growth momentum and continue to be an ‘Upper Layer NBFC’ for many years to come.”
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