Muthoot Finance shares advance over 2% as S&P Global Ratings upgrades company's ratings; check key details

S&P Global Ratings said, "This reflects our view that the company will maintain its excellent capital and earnings over the next 12 months while benefiting from the strengthening regulatory environment, particularly for upper-layer fincos in India. We expect some stress in the asset quality of Muthoot's microfinance subsidiary, in line with the industry. That said, we expect the company to maintain overall asset quality, thanks to the dominance of its highly collateralised gold loan portfolio."

The rating agency added that Muthoot is one of the largest players in the gold loan market, focussing on loans against gold jewellery, although it is relatively small within the overall financial sector in India.

"We expect the company to maintain its strong market position despite increasing competition. Muthoot benefits from strong brand recognition and a proven track record in gold loans. While banks have become aggressive in this lucrative segment, we believe Muthoot will retain its market position due to its extensive experience and expertise in this niche," it added.

Last week, Muthoot Finance announced that it crossed the landmark milestone of ₹1 lakh crore in gold loan assets under management (AUM) on March 13, 2025.

Commenting on the feat, George Alexander Muthoot, Managing Director, said, “Reaching ₹1 lakh crore Gold Loan AUM is a testament to our unwavering commitment to excellence, innovation, and customer engagement 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."

The MD added, "We sincerely thank our customers, banking partners, lenders, NCD holders, investors, shareholders, and other stakeholders for their trust and continued support. We would also like to place on record our gratitude to various regulators, including the Reserve Bank of India, for their guidance and oversight in fostering a stable and robust financial environment."