Muthoot Finance to Expand with 115 New RBI Approved Branches

India’s biggest non-banking financial company (NBFC) with a focus on gold loans is Muthoot Finance Ltd. The company, which has its headquarters in Kochi, Kerala, has established a strong reputation in the financial industry by providing a variety of services beyond gold loans, such as business and personal loans, insurance, money transfers, and gold coin sales.

Approval From RBI 

Muthoot Finance Ltd, India’s largest non-banking financial company (NBFC) specialising in gold loans, has received approval from the Reserve Bank of India (RBI) to expand its footprint with 115 new branches. 

In a regulatory filing on February 26, 2025, Muthoot Finance informed the stock exchanges of this significant development. The RBI has advised the company to furnish details of the newly established branches while also ensuring robust security measures and appropriate storage facilities for gold jewellery, including secure vaults.

RBI Guidelines 

The RBI’s letter stated, “With reference to your letter dated November 28, 2024, seeking permission for the opening of new branches, we hereby grant approval for the establishment of 115 branches as requested. 

You are also advised to inform the bank of the details of the branches once operational. Furthermore, the company is instructed to implement adequate security arrangements and ensure proper storage for gold jewellery, including safe deposit vaults, in accordance with prevailing regulations.”

Muthoot Finance Q3 FY25 Results

This expansion follows Muthoot Finance’s robust financial performance in the third quarter of the fiscal year. Earlier this month, the company reported a stellar 26% year-on-year surge in net profit, reaching ₹1,389 crore compared to ₹1,104 crore in Q3 of the previous financial year. Revenue from operations witnessed an impressive 36% year-on-year growth, soaring to ₹5,190 crores from ₹3,820 crores in the corresponding quarter of FY24. Meanwhile, the company’s interest income stood at ₹5,067 crore.

Share Price Performance 

At 11:32 AM on February 27, 2025, Muthoot Finance Ltd shares traded 1.36% up at ₹2,212.95 per share on the NSE.

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