Rising gold prices have translated into increased traction for gold loans. Muthoot Finance Ltd is among the beneficiaries. Assets under management (AUM) of its mainstay gold loan business clocked nearly 18% year-on-year growth and 7% sequentially to ₹66,039 crore in the June quarter (Q1FY24). Given the resilient Indian economy and improved demand conditions, the management has retained its gold loan AUM growth guidance of 10-15% in FY24.
Remember, increased competition from banks in the gold lending business had taken a toll on the gold financier’s performance in the recent past. But the Muthoot management sees some of that pressure easing now, helping the company attract new customers. “The renewed growth in (gold loan) customer base over the past two quarters, after a decline over the preceding five quarters, has been a function of augmented advertising & local marketing activity and better incentive/reward schemes/contest," said analysts at Yes Securities Ltd.
Diese Geschichte stammt aus der August 15, 2023-Ausgabe von Mint Mumbai.
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Diese Geschichte stammt aus der August 15, 2023-Ausgabe von Mint Mumbai.
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