Muthoot Finance to unlock India's 25,000 tons of 'dead gold'
What's the story
Alexander George Muthoot, the Joint Managing Director of Muthoot Finance, has claimed that India has about 25,000 tons of unused gold.
He called it a 'dead asset' and stressed his company's dedication to convert it into a productive one.
'Dead gold' refers to gold that is neither actively traded nor contributing to the economy, often lying idle in the form of jewelry or other personal possessions.
Business transformation
Muthoot Finance's strategy and performance
Muthoot emphasized his company's business transformation and lead acquisition strategy, which has led to record loan disbursements to new customers.
The company, a leading gold loan provider, has added nearly 13,70,178 new customers and disbursed loans worth ₹15,723 crore.
"Our thrust on new customer acquisition stands and we are positive of a good quarter four (January-March 2025) also," Muthoot said.
Growth indicators
Operational efficiency and financial performance
Muthoot Finance has improved its operational efficiency across its large branch network.
The per-branch productivity has increased to ₹19.15 crore in gold loan assets under management (AUM) from ₹14 crore in the last nine months.
The company also reported a strong financial performance with a 32.7% year-on-year (YoY) increase in net profit to ₹1,363 crore for the October-December quarter of FY25.
Market standing
Muthoot Finance's market capitalization and share performance
The company's net interest income (NII) also witnessed a whopping 42.8% YoY surge to ₹2,721.4 crore, compared to ₹1,905.7 crore in Q3 FY24.
Muthoot Finance's market capitalization stands at around ₹93,151.67 crore, with its shares witnessing a massive rise of nearly 70% in the last year.
This reflects strong investor confidence in the company's strategies and performance.