In an interview with CNBC-TV18, George Alexander Muthoot, MD, Muthoot Finance, said that it is a good sign that gold prices continue to remain steady. He believes, with rising overall credit growth, gold loan demand will pick up as well. Muthoot is of the view that the gold loan market is expanding. He further added that the company is seeing better traction in Q4 when compared to Q3.

He said, “In Q4 (FY22), we see better traction; gold loan business is moving up and we should do much better in Q4 than in Q3. Q3 was a flat quarter as far as growth was concerned. We should see Q4 as a much better quarter. We see growth coming from all over the country and from here on, the economy will also start looking up.”

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He clarified that Muthoot Finance is seeing assets under management (AUM) growth in the range of 12-13 percent. He expects gold loan sector to contribute more than 15 percent to the company's growth. Additionally, he expects margin to be maintained in the range of 10-11 percent.

“We have always been guiding 15 percent growth and I am sure in FY23 we should see more than 15 percent growth coming in the gold loan sector,” said Muthoot.

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For the entire interview, watch the video

First Published:Feb 22, 2022 12:52 PM IST