Muthoot Finance gets RBI approval to open 150 new branches across India

Muthoot Finance says it will hire 600 more people for the expansion

Muthoot Finance, a gold financing company, has got the Reserve Bank of India’s approval to open 150 new branches across the country as it expands business after a gap of nearly three years.

Muthoot expects gold loans to grow 12-15 per cent in the financial year 2022-23, saying the RBI’s approval will help expand its customer base in South and North India.

Kerala-based Muthoot, India’s largest gold loan non-banking financial company (NBFC), said demand for credit increased during the coronavirus pandemic. As per RBI regulations, gold-loan NBFCs need permission to open new branches.

The company plans to train and hire 600 more people for the expansion. “At Muthoot Finance, our aim has always been to make credit accessible to all, and overcome barriers that people often tend to face in the process of availing credit. We would like to thank the RBI in granting us the much awaited approval to expand our operations and open 150 new branches across India. The RBI’s nod for branch expansion is a positive development for our business and it also reinforces regulatory confidence in the gold loan NBFCs,” said George Alexander Muthoot, managing director, Muthoot Finance.

“As the economy gradually recovers, the gold loan demand remains steady and the RBI’s nod for branch expansion reinforces our optimism about a growth of 12-15 per cent in gold loan for FY23.” He added. The 150 new branches will add to the existing network of 4617 branches. Muthoot plans to operationalise new branches by next two months. “With this step, we aim to deepen our penetration, especially towards the underserved segment of the society, support our customers in fulfilling their dreams and also create employment opportunities,” he said.

Muthoot recently expanded its doorstep gold loan service across South India. The company saw consolidated assets under management growth of 11 per cent to Rs. 64,494 crore. Its profit was Rs 4,031 crore in Financial Year 2021-22.