What has changed after your re-branding?
The transition to Muthoot Mcred Ltd (formerly Muthoottu Mini Financiers Ltd.) represents much more than a name change. It reflects our evolution into a professionally managed, technology-driven and governance-focused NBFC aligned with the future of financial services in India. The rebranding reflects all these. Still south India remains our strongest market. We are also selectively expanding into other high-growth markets where demand for secured retail credit is increasing.
Could you provide an overview of your key operational and financial metrics?
As of 31 March 2026, we reported Assets Under Management (AUM) of Rs 6625.07 crore, reflecting a year-on-year growth of nearly 60 per cent. The company reported net profit of Rs 176.90 crore in FY26, an 88 per cent increase. Our gold loan business continues to remain the primary growth driver and contributed over 94 per cent of the total AUM as of March 2026. The segment has witnessed strong traction due to rising demand for secured and quick-access retail credit solutions among individuals, small businesses and self-employed customers.
We also have presence in the microfinance segment and continue to evaluate opportunities for calibrated portfolio diversification while maintaining strong asset quality and disciplined underwriting standards.
What are key drivers to achieve your aim of AUM of Rs 16,000 crore by 2030?
The target of achieving Rs 16,000 crore AUM by 2030 will primarily be driven by sustained growth in the secured gold loan segment, deeper market penetration and gradual expansion into new geographies.India’s gold loan sector continues to witness strong structural demand. This will provide significant long-term opportunities for organised NBFCs with strong governance and risk frameworks.
Technology will also play a major role in supporting future growth. We have invested extensively in digital lending infrastructure, workflow automation and analytics-led operational systems that improve turnaround time, productivity and customer experience while enabling scalable growth. At the same time, our focus will remain on maintaining strong asset quality, prudent risk management and responsible lending practices, which are critical for sustainable long-term expansion.
How does Muthoot MCred differentiate in the competitive gold loan market?
Gold loans have become increasingly popular because they offer a transparent, convenient and easily accessible source of credit. With minimal documentation, quick disbursals and the ability to leverage rising gold values, they have emerged as an attractive financing option. Beyond emergency needs, gold loans are now widely used for working capital and business requirements. The growing shift towards formal credit channels has further accelerated demand, with organised NBFCs playing a key role.
While competition from banks and NBFCs reflects the sector’s strong growth potential, differentiation depends on customer trust, operational efficiency and service quality rather than pricing alone. At Muthoot MCred, we focus on faster processing, technology-driven customer experiences, transparent lending practices and disciplined risk management. Our strong understanding of retail and semi-urban borrowers, combined with investments in digital infrastructure, enables us to scale responsibly while delivering sustainable, customer-centric growth.
Will volatile gold prices impact your operations?
It is an inherent characteristic of the market and organised gold loan companies typically build strong risk management frameworks to manage such fluctuations effectively. While rising gold prices generally support portfolio growth and customer borrowing capacity, sharp corrections may impact collateral values, if not managed prudently.
We follow a disciplined and conservative lending approach supported by robust risk management systems. We maintain prudent loan-to-value ratios in line with regulatory norms and continuously monitor portfolio exposure and collateral coverage through technology-enabled systems. Since gold loans are secured, short-tenure products, they are generally more resilient compared to unsecured retail lending products. We also maintain strong operational controls around collateral valuation, auction processes and portfolio monitoring to mitigate risks arising from price volatility.
Importantly, our Gross NPA and Net NPA stood at 0.62 per cent and 0.26 per cent, respectively, as of 31 March 2026, reflecting one of the strongest asset quality profiles in the industry and the effectiveness of our disciplined underwriting and risk management framework.
What would be the impact of recent government measures on gold?
From an industry perspective, policy measures that encourage formalisation and improve governance standards can support the long-term growth and credibility of the organised gold loan sector. While policy changes or fluctuations in gold prices may influence short-term market sentiment, the long-term fundamentals of the gold loan sector remain strong due to India’s significant household gold holdings and rising demand for secured retail credit solutions.
Your views on the current situation in the microfinance segment?
The microfinance industry experienced a challenging period over the last few quarters due to high credit costs, regional disruptions and repayment stress across certain borrower categories. However, the sector is now gradually showing signs of stabilisation, supported by improving collection efficiency, stronger underwriting discipline and more calibrated portfolio management practices.
From our perspective, the recovery trend is encouraging, particularly as the industry becomes more focused on responsible lending and portfolio quality rather than aggressive expansion. The sector continues to play a critical role in advancing financial inclusion by extending access to credit to underserved communities and small borrowers. We have maintained a cautious and disciplined approach within microfinance with strong emphasis on risk monitoring and operational controls. We believe the recovery will be gradual and sustainable, led by institutions that focus on prudent underwriting, governance and customer centric lending practices.