In an interview with CNBC-TV18, George Alexander Muthoot, MD, Muthoot Finance, said it’s a good sign that gold prices remain stable. He believes that with the increase in overall credit growth, the demand for gold loans will also increase. Muthoot believes that the market for gold loans is expanding. He further added that the company is seeing better traction in the fourth quarter compared to the third quarter.
He said: “In the fourth quarter (FY22), we are seeing better traction, the gold lending business is improving and we should do much better in the fourth and third quarters. The third quarter was a flat quarter in this As far as growth is concerned, we should consider the fourth quarter to be a much better quarter. We see growth coming from all over the country and from now on the economy will also start to improve.
He clarified that Muthoot Finance sees growth in assets under management (AUM) in the range of 12-13% compared to its forecast of 15%. He pointed out that the business still spreads around 10%. Moreover, he expects the margin to be maintained within a range of 10 to 11%.
“We’ve always guided 15% growth and I’m sure in FY23 we should see over 15% growth in the gold lending business,” Muthoot said.
For the full interview, watch the video