Muthoot Finance shares rally 5% as gold loan AUM surpasses ₹1 trillion amid rising gold rates

Shares of the Kerala based financial firm Muthoot Finance rallied by as much as 5% on Monday, after the company announced that its gold loan asset under management (AUM) crossed ₹1 trillion on March 13, 2025, a major achievement for the lender.

Gold prices in India have been on a continuous rise due to volatile markets, geopolitical tensions and trade war fears, among other factors.

Gold rates on Monday, March 17 recorded a lifetime high of ₹90,750 per 10 gm (99.9% purity) and ₹90,350 per 10 gm (99.5% purity) in Delhi, as per a PTI report. The yellow metal hit its previous record high of ₹89,450 per 10 gm (99.9% purity) and ₹89,050 per 10 gm (99.5% purity) on February 20.

"This remarkable achievement underscores the trust and confidence of our lenders, investors, customers, and all other stakeholders placed in us and reaffirms our commitment to delivering sustained value and growth,” said Muthoot Finance in a regulatory filing dated March 14.

During the intraday period, the scrip of Muthoot Finance climbed 5% to ₹2,307.95 per share. However, it settled at ₹2,294 apiece on the National Stock Exchange (NSE), advancing 4.45%. Muthoot Finance shares hit their 52-week high of ₹2,335 apiece last month on February 13. In the last one year, the stock has surged by 64%.

Commenting on the development, Muthoot Finance Managing Director George Alexander Muthoot, said: "Reaching ₹1 trillion in gold loan AUM is a testament to our unwavering commitment and the trust we have built over generations. I would also like to extend my gratitude to our employees, whose relentless dedication and expertise have been instrumental in achieving this success. We sincerely thank our customers, banking partners, lenders, NCD holders, investors, shareholders, and other stakeholders for their trust and continued support.”

The company is focused on sustaining growth and introducing customer-centric innovations to maintain its position as a leader in the NBFC space, the company filing stated.

Muthoot Finance Q3 FY25 results

In the third quarter of the current fiscal year (Q3 FY25), Muthoot Finance posted a 33% year-on-year (YoY) growth in its standalone net profit to ₹1,363 crore as against ₹1,027.3 crore in the year-ago period.

The company’s net interest income (NII) for the October-December quarter stood at ₹2,721.4 crore, up 42.8% as compared to ₹1,905.7 crore in Q3 FY24. Its standalone loan assets under management (AUM) jumped to ₹26,305 crore on the back of festive-season borrowing trends.