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Details of New Bond on Offer



Issue Close

19th Dec 2022

Interest Rate Range

7.75 - 8.25%

Tenure in Months

24 to 60

Issue Timeline

Issue Open/Close

28th Nov'22 - 19th Dec'22



Refund Initiation


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Muthoot Finance Limited

MFL is the largest gold loan NBFC in India in terms of loan portfolio. It offers Gold Loan, Home Loans, Personal Loan, Insurance, Foreign Exchange, Mutual Funds, Micro Finance and Vehicle loan.  It has a network of 4,600+ branches with 26,000+ employees.

As of Mar, 2022, Loan Portfolio crossed Rs. 58,000 Cr, where Revenue stood at Rs. 11,082 Cr with PAT of Rs.  3,954 Cr., Net NPA at 2.71% and a total capital adequacy ratio of 29.97%.

And for the first quarter of this financial year i.e. FY’23, Loan Portfolio at Rs. 64,443 Cr, where Total Income stood at Rs. 2,804.3 Cr with PAT of Rs. 825 Cr and a total capital adequacy ratio of 30.62%

Key Strengths

  • 1

    Established track record and brand name in gold financing industry

    - It has sustained leadership position in the gold financing segment, supported by the long and established track record of 80 years of its promoter family.

    - Despite moderate volume growth and increased competition, the company’s gold loan AUM grew by 27.4% over fiscal 2021 to reach Rs 51,927 crore on March 31, 2021.

    - As at the end of June 30, 2022, the average AUM per branch stood at Rs 12.6 crore, almost double of that for fiscal 2013.

  • 2

    Strong capitalisation

    - Capital position remains strong in relation to its scale and nature of operations, supported by its demonstrated ability to raise capital frequently and large accretions to networth.

    - As on June 30, 2022, the company reported a consolidated networth of Rs 18,801 crore and a comfortable gearing of 2.7 times. Strong internal cash generation from the gold loan business will allow Muthoot Finance to prudently capitalize its subsidiaries and provide need-based liquidity support, apart from strengthening its standalone capital position. 

  • 3

    Profitability among the best in the industry, expected to remain healthy

    - For fiscal 2021 and 2022, the consolidated RoMA stood at 6.1% and 5.6% (annualized), respectively – which is higher than almost all lending entities operating in India. 

    - The gross stage III assets as a percentage of gross loans has declined in Q1 2023 and stood at 2.1%.

Key weaknesses

  • 1

    Geographical concentration in operations and low market presence in non-gold businesses

    - Operations have a high degree of geographical concentration - South India accounted for 50% of the company’s AUM and 60% of its branches as on June 30, 2022.

    - Significant regional concentration renders the company to vulnerabilities of economic, social, and political disruptions in the region.  

    However, it had started to diversify its product suite across housing finance, microfinance, vehicle finance and a few other segments and growth of these businesses led to an increase in their share in the consolidated AUM, to almost 13% by the end of fiscal 2020. 

  • 2

    Asset quality challenges associated with non-gold loan segments 

    - With respect to impact of covid-19, the non-gold businesses have faced asset quality challenges in its aftermath. 

    - As on June 30, 2022, the GNPA for the microfinance business (Belstar) was 7.3%, for the vehicle loans (Muthoot Money) was 7.8% and, for housing loans (Muthoot Homefin) was 2.6%. 

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