Muthoottu Mini Financiers Limited, a company that turns everything it Muthoottu Mini Financiers Limited, a company that turns everything it touches to gold, has once again proved its mettle.

In FY24, this leading Non-Banking Financial Company (NBFC) delivered robust performance across all key metrics, including revenue growth, profit margins and strengthened Assets under Management (AUM). Revenue surged by 23.53 per cent, increasing from ₹544 crore in FY23 to ₹672 crore in FY24. The company’s strong performance reflects its commitment to customer-centricity and its mission to be a comprehensive financial services provider.

Mathew Muthoottu, Managing Director of Muthoottu Mini Financiers, expressed satisfaction with the company’s performance and outlined its growth strategy for the future.

Moving forward into FY25, Muthoottu Mini Financiers aims to expand its reach by tapping into new markets and underserved regions. This strategic focus will enable the company to bring more people into the formal financial system and address their credit needs. In addition to its core gold loan services, the company plans to introduce new products to cater to the diverse financial requirements of its customers,” he says.

Rapid expansion is on the cards

By FY27, we target a turnover of ₹ 7,500 crore. This will position us well for an IPO, a game-changer for us. We’re also eyeing the MSME segment, though the current picture is a bit negative. But we’re determined to enter this segment,” he adds.

The company plans to strengthen its operations in the newer markets, aiming to on-board 3,500 new employees in the next three years.

Low-ticket loans, low interest rates

“Our USP lies in low-ticket loans with low interest rates. This, we believe, is true financial inclusion,” says PE Mathai, Chief Executive Officer of Muthoottu Mini Financiers.

He further explains, “Approximately 65 per cent of the gold loan segment in India is dominated by private, unregulated lenders who often exploit borrowers. Banks and NBFCs cater to the remaining portion. The primary challenge for NBFCs in the context of RBI regulations is balancing risk management with profitability, especially when it comes to Loan-to-Value (LTV) ratios for gold loans.”

Mathai notes, “Stricter LTV ratio guidelines limit the loan amount disbursable against gold collateral. While this mitigates risk, it also curbs potential earnings. At the same time, NBFCs must remain competitive by offering attractive terms to customers.”

The company plans to widen its geographic reach. “We currently operate from 927 branches and plan to add 50 more this year. Tamil Nadu, a state with significant gold holdings, has been a key market for us. We’re also rapidly expanding our presence in Andhra Pradesh, Telangana, New Delhi, Gujarat, and Maharashtra. We’re exploring opportunities to enter the Uttar Pradesh market,” says Mathai.

In line with this expansion, the company is also focussing on enhancing its digital footprint. “Our ‘MyMuthoottu App’ witnessed a significant number of downloads last year, and we expect further acceleration in digital adoption this fiscal,” adds Mathai.

Legacy of trust

Muthoottu Mini Financiers, the flagship company of the M Mathew Muthoottu Group, was founded in 1921 by M Mathew Muthoottu. With over a century of history, the brand has earned a reputation for trust and reliability, serving over 25 lakh customers.

Under the visionary leadership of Chairperson Nizzy Mathew, the company has made significant strides in women’s empowerment, offering women-friendly gold loans and microfinance solutions. She has also been instrumental in creating a strong, female workforce within the company.

Mathew Muthoottu, the fourth-generation leader, took over the reins from his father, Roy M. Mathew, who continues to build upon the legacy of trust and perseverance established by his predecessors.

Range of services

Muthoottu Mini offers a range of value-added services beyond lending. These include secure and redeemable Non-Convertible Debentures (NCDs) that offer higher interest rates. The proceeds from NCD issuances are primarily utilised for lending and financing activities, with a portion allocated to general corporate purposes.

To enhance customer offerings, Muthoottu Mini has partnered with leading insurance providers such as Kotak Life, Tata AIA, Liberty General Insurance, The New India Assurance Company Limited, Oriental Insurance and HDFC Life. These partnerships enable the company to offer comprehensive insurance solutions, including life, health and home insurance. Muthoottu Mini provides customised wealth management services to cater to the diverse financial needs of its customers.

Microfinance is another segment in which Muthoottu Mini operates. 

Microfinance currently constitutes 8.35 per cent of our total operations. Each branch has specific targets, ensuring viability. Our microfinance segment has been successful, with a low NPA rate of just 2.22 per cent,” says Mathai.

Muthoottu Mini maintains that all its activities are centred on maintaining the goodwill from customers it has earned over the years. “We prioritise long-term relationships and strive to provide quality service. Our mission is to grow and establish ourselves as a leading NBFC in India,” says MD Mathew Muthoottu.

Muthoottu Mini Financiers empowers millions with financial inclusion through its accessible, low-ticket, low-interest loans.

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