Muthoot Finance has gotten the go-ahead from the RBI to open 115 new branches which will help expand its operations across the country. In an official communication, the RBI told Muthoot Finance that it had accepted the company’s application and required the company to notify the RBI of the new branches when they are ready to operate. The central bank also stressed the need to have enough security measures and proper storage facilities for gold jewellery including safe deposit vaults as per the guidelines. The shares of Muthoot Finance were also kept stable and were quoted at Rs 2,177.55 on the National Stock Exchange (NSE). The company’s financial performance has been very good; it posted a net profit of Rs 1,389 crore for the quarter ended December 31, 2024, which is 26% higher than the corresponding quarter of the previous year’s Rs 1,104 crore. Also, the revenue from operations was up by 36% year on year to Rs 5,190 crore from Rs 3,820 crore in FY24. Interest income also grew rapidly to Rs 5,067 crore during the quarter. The Chairman of the company, George Jacob Muthoot, shared his optimism on the economic environment and pointed out that the existing favorable macroeconomic indicators as well as the positive tax reforms announced in the Union Budget are likely to boost consumption and, therefore, economic growth. He also observed that the RBI’s efforts to improve liquidity and its action to reduce the benchmark interest rate for the first time in five years have created a positive environment in the financial sector. From the approval of new branches, Muthoot Finance is well positioned to increase its presence and maintain its good performance in the lending business.
Muthoot Finance Secures RBI Approval
