Gold prices hit multiple record highs during the March quarter, increasing the loan value customers could secure against their holdings—benefiting gold financiers like Muthoot Finance by driving up loan disbursements.
Analysts noted that a slowdown in unsecured lending, triggered by rising delinquencies, prompted borrowers to turn to gold loans as a safer and quicker funding alternative.
Muthoot’s standalone loan assets under management—excluding subsidiaries such as Muthoot Homefin and Belstar Microfinance—rose 43% year-on-year to ₹1.09 lakh crore as of March-end.
In contrast, smaller peer Manappuram Finance posted a surprise loss earlier this month, impacted by stress in its microfinance division.
The company posted a net profit of ₹1,508 crore for the quarter ended March, up from ₹1,056.3 crore a year earlier.
NII rose 36% to ₹2,904 crore from ₹2,135 crore in the same period last year.
Shares of Muthoot Finance ended 2% higher on the BSE at a price of ₹2,262.75 today.
