George Alexander Muthoot, managing director, Muthoot Finance, said that in view of the record performance, the company is upgrading its FY26 gold loan growth guidance to 30-35% from 15%.
The company’s loan book expanded 42% to Rs 1,47,673 crore. Its net interest income (NII) rose 59% to Rs 3,991 crore in Q2 from Rs 2,518 a year ago.
Gold loan disbursements to new customers climbed to Rs 13,183 crore across 8,90,920 customers and the quantity of gold held as security in its lockers rose to 209 tonnes from 199 tonnes.
Asset quality improved, with gross stage three loans – or loans overdue for more than 90 days – dropping to 2.25% at the end of September from 2.58% in the previous quarter. Gross NPAs, however, rose to 1.69% from 1.59% a year ago.
The company’s board has approved an incremental fund raise of up to Rs 35,000 crore via non-convertible debentures in multiple tranches. It also approved an additional equity infusion of Rs 500 crore in Muthoot Money Ltd, a wholly owned subsidiary of Muthoot Finance.The company’s shares ended 2% higher on the day to Rs 3391 apiece.