Muthoot Finance Reports 21% Profit Growth in Q2 FY25

Muthoot Finance Ltd (MFIN), India’s largest gold financing company in terms of loan portfolio, has continued its streak as the only gold loan NBFC named in RBI’s ‘Upper Layer’ list for three consecutive years. The company received the Upper Layer status for the first time in FY’23.

In Q2FY25, the company had crossed the historic milestone of ₹1 lakh crore in consolidated loan assets under management. In Q2 FY25, it recorded a net profit of ₹1,321 crore, registering a 21% year-on-year growth, and its total revenue from operations surged by 36.7% to ₹4,928.8 crore.

The Reserve Bank of India (RBI) classifies Non-Banking Financial Companies (NBFCs) into different layers based on their size (base layer, middle layer, and upper layer), activities, and risk levels under the Scale Based Regulation (SBR) framework. The Upper Layer comprise of those NBFCs which are specifically identified by the Reserve Bank as warranting enhanced regulatory requirement based on a set of parameters and scoring methodology.

George Alexander Muthoot, Managing Director, Muthoot Finance, said: “It is a matter of great pride for us that not only do we comply with the highest standards of regulatory compliance, as prescribed by the Reserve Bank of India (RBI), but have also consistently delivered strong business growth. As we move forward, Muthoot Finance remains committed to strengthening our leadership in the gold loan industry while broadening our portfolio with new products and services to meet the diverse financial needs of our customers. NBFCs are vital for the country’s growth as they enable financial inclusion for a large population who otherwise would not have easy access to credit. We are focused on addressing the needs of the MSME segment through a diverse set of product offerings. This is exemplified by the fact that 66% of women gold loan borrowers use the funds to support their small or micro businesses, which play a crucial role in driving economic development. We believe that we can continue our strong growth momentum and remain steadfast as an ‘Upper Layer NBFC’ for a decade or more”.