Muthoot Finance Q1 profit jumps 25% as gold loan AUM hits record

George Alexander Muthoot, Managing Director, called the start to the year "impressive" and attributed the growth to a "three-pronged strategy" focused on disbursements, operational efficiency, and maintaining healthy margins. He said gold loan AUM reached a "historic high" of ₹1,72,053 crore.

Chairman George Jacob Muthoot said gold loans remain a vital source of timely credit for millions of individuals and small businesses as the Indian economy expands. "We are accelerating our digital transformation to make credit delivery faster, simpler and more seamless," he said.

The company is seeing "increasing adoption of gold loans as a reliable, accessible and inclusive source of credit across customer segments," the managing director added. Reserve Bank of India data also identifies gold loans as one of the fastest-growing segments in retail lending, underscoring the sector's structural potential, he noted.

Muthoot Finance, which operates one of India's largest gold loan networks, competes with Manappuram Finance and Muthoot Microfin. The gold loan business, tied closely to gold prices, benefits from rising demand for quick, secured credit in a growing economy.