Muthoot Finance Ltd, one of India’s leading gold financing companies, will focus on deepening its gold loan franchise while scaling non-gold lending businesses in FY27, with asset quality and capital adequacy remaining key priorities.
“We will deepen the gold loan franchise and continue to acquire customers at pace. We will scale our non-gold lending lines, which are now growing faster than the core, while holding them to identical credit discipline,” said Managing Director George Alexander Muthoot in a letter to shareholders.
Focus on disciplined growth
The company will also expand the reach of its subsidiaries into segments not directly served by the parent, while maintaining its asset quality and capital position.
“We will hold asset quality and capital adequacy where they now stand, because the cost of loosening has never been worth the growth it buys,” he said.
Technology to expand capacity
The company said technology will support its expansion without replacing the human element of customer engagement.
“Technology, for us, is a question of capacity, not replacement. It takes the routine off the counter so the counter can do what only it can: earn trust in person,” he said.
Muthoot Finance said it pioneered the gold loan concept in India’s financial market and popularised it through products such as Smart Loan and Gold Power.
Gold remains core
“We grew the book by half and improved its asset quality in the same year. In lending, that combination is the only one that matters,” he said.
The company will also closely monitor funding and risk amid uncertainty around energy prices and currency movements.
Long-term purpose
“The path of energy prices and the rupee depends partly on a conflict none of us can forecast, and we will manage our funding and our risk with that firmly in view,” said Chairman George Jacob Muthoot.
“For close to nine decades, this company has done one thing and done it with care: it has stood beside the Indian household in the moment it needed a hand. That is the whole of our purpose, and it has not changed. We intend to remain precisely where we have always been: closer to more Indians than before, in the moment they need us,” he said.