2. INTRODUCTION
◦ A non- banking finance may be defined as an institution which
mobilizes the savings of the community and diverts them for
financing different activities .
◦ Non-bank financial companies (NBFCs) are financial institutions
that provide banking services without meeting the legal definition
of a bank ,I .e .one that does not hold a banking licence .
3. THE NBFC COMPANY WHICH I SELECTED
FOR PRESENTATION ?
This Photo by Unknown Author is licensed under CC BY
5. MUTHOOT FINANCE KEY PEOPLE
This Photo by Unthor is licensed under CC BY-SA
GEORGE
ALEXANDER
MUTHOOT
(MD)
GEORGE JACOB
MUTHOOT
(DIRECTOR)
GEORGE THOMAS
MUTHOOT
(DIRECTOR)
6. INTRODUCTION OF THE COMPANY
◦ Incorporated in 1997 . Muthoot finance Ltd.is India’s largest gold loan
company .It is a subsidiary of Muthoot group which is headquartered at kochi.
◦ It provides personal and business loan secured by gold jewellery or gold loans .
Primarily to individuals who process gold jewellers but could not acess formal
credit within a reasonable time or to whom credit may not be available at all to
meet unanticipated or other short –term liquidity requirments .
◦ The founder of Muthoot finance Ltd . Is late Mr. m. George Muthoot
7. WHY I SELECTED MUTHOOT FINANCE ?
◦ It is a largest gold financing company in India in terms of loan portfolio
◦ It has a largest branch net work among gold loan NBFCs in India
◦ It has track record of over 72 years .
◦ Customers includes small businessmen , vendors , traders , farmers and
salaried indiviguals
◦ It also have 3,000 branches across 25 states in India
◦ It employed 25,000 employees in its operations
9. ABOUT GOLD LOAN
◦ Loan disbursal in 5 minutes
◦ Loans starts from 1,500 to 1 crore
◦ Minimal documentation and credit assessment requirements
◦ Evaluation of gold ornaments takes place in house
◦ Safety of gold ornaments : All branches as equipped with strong rooms for
keeping safe custody of gold ornaments
◦ Gold loan available at over 3,000 Muthoot finance branches across India
◦ 0 % processing fees
◦ Key feature of gold loan :
10. ABOUT MONEY TRANSFER
◦ Muthoot money transfer allows real time money transfers from across the
sea’s with the money reaching the receiver in less than 10 minutes .
THE KEY HIGHLIGHTS OF THIS SERVICES ARE :
◦ Fastest money transfer facility
◦ No bank account for amounts up to Rs.50000
◦ The receiver does not have to pay any service charge
◦ Certified by the RBI
11. ABOUT FOREIGN EXCHANGE
◦ Muthoot foreign exchange service with the wide network of almost 3000
branches
A FEW FEATURES OF THEIR FOREIGN EXCHANGE SERVICE
◦ Buying and selling of all major traveller’s cheques and travel cards
◦ Commission free encashment of traveller’s cheques
◦ Competitive rates all currencies
◦ Remittance of funds abroad for various purpose
12. ABOUT M- POWER CARD
◦ Access it anywhere in India
◦ Earn loyalty points on every transaction at any Muthoot branch
◦ Redeem these loyalty points for attractive gifts
◦ Get Rs .20 per gram extra on gold loan
◦ Keep all your jewelery in our lockers free of cost (no locker
charge)
◦ Rs.50,000 personal accident insurance coverage
◦ Special overdraft scheme for M power cardholder
13. ABOUT TRAVELSMART
Within just a few months of its launch Muthoot travelsmart has
already become one of the leading IATA (International Air
Transport Association)
THE SERVICE OFFERED UNDER TRAVELSMART INCLUDE :
◦ International & domestic ticketing
◦ Railway ticketing
◦ Tours
◦ Passport , emigration &visa
◦ Travel Insurance
15. MARKET SHARE OF MUTHOOT FINANCE IN
GOLD LOAN
73%
17%
6%
4%
SHARES
promoter
s
institution
s
mutual
funds
16. GEOGRAPHICAL DISTRIBUTION OF MUTHOOT
FINANCE IN TERMS OF GOLD LOAN IN INDIA
44%
31%
17%
8%
GEOGRAHICAL DISTRIBUTION
SOUTH INDIA WEST INDIA NORTH INDIA EAST INDIA
17. REASON FOR MORE SUCCESS IN SOUTH
REGIONS
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Chart Title
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18. Very first reason is that the founder of Muthoot finance ltd is from south India
region
The southern region of India accounts for 85-90% of the Gold loans market in
India
Major reason for success is that the 70% of its branch network positioned in
southern region
19. ADVANTAGES OF GOLD LOAN
◦ No income and salary requirments
◦ Even if you have a bad credit history and low income level
◦ Low interest rates
◦ Pay only the interest
◦ Conveneience
◦ Emotional attachments
◦ Less processing time
20. SWOT ANALYSIS OF MUTHOOT FINANCE
STRENGTHS
◦ Market leading position in the gold loan business with a strong presence in
under –served rural and semi-urban markets
◦ Strong capital raising ability
◦ Geographic diversification will aid in business scalability
OPPORTUNITIES
◦ The gold loans market is significantly under – penetrated and is expected to
continue growing at the rate of 35-40 % in the future.
◦ Challanging customer attitude and life style.
21. ◦ Gold loan business constituted 98.5 % revenues. So any major decline in gold
prices in future can adversely impact the company’s revenue .
◦ RBI removed the priority sector lending status to gold loans for the
agriculture purpose
THREATS
◦ Rising interest rate scenario
◦ There are about 7,000 litigation cases against the company .
◦ Increased competition from other NBFCs and banks in gold financing
business
27. 2022 Y/Y CHANGE
CASH AND SHORT TERM
INVESTMENTS
101.22 29.48 %
TOTAL ASEETS 763.16 11.18 %
TOTAL LIABILITIES 571.79 8.13%
TOTAL EQUITIES 191.38 -
SHARE OUTSTANDING 401.35 -
PRICE TO BOOK 2.26 -
RETURN ON ASEET 5.56 -
RETURN ON CAPITAL - -
28. CRISIL RATINGS
◦ CRISIL has assigned Aits ‘CRISIL AA + / STABLE’ rating Rs 3000 crore Non
– convertible debentures of Muthoot finance limited
◦ (CRISIL AA+/STABLE rating are considered to have high degree of safety
regarding timely servicing of financial obligations .such instruments carry very
low credit risk)
29. CONCLUSION
◦ The company Muthoot falls under the brand umbrella of the Muthoot group. It
stocks are listed on the ‘Bombay Stock exchange ‘ and ‘NSE’. As of march
2012 revenue stood at more than 23000 crore
◦ The target of Muthoot finance includes small businesses , vendors , farmers,
traders, SME business owners and salaried individuals .
REFERENCESS : MUTHOOT FINANCE OFFICIAL WEBSITE
(muthootfinance.com)
