Muthoot Finance is India's largest gold loan NBFC. It provides gold loans to individuals and businesses, with over 3,000 branches across India. Muthoot has been successful due to its large branch network in Southern India, where 85-90% of gold loans are concentrated. It offers gold loans with quick processing, minimum documentation, and lower interest rates than other lenders. While dependent on gold prices, Muthoot has consistently grown its revenues and profits over the past years through its market leading position in the gold loan industry.

1. BUSINESS ASPECTS IN
BANKING &INSURANCE
MUTHOOT FINANCE

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

4. MUTHOOT BUSINESS SECTOR’S
FINANCE
HOSPITAL
ITY
BROADCAST
MEDIA
HELATH
CARE EDUCATION
RENEWABLE
ENERGY
REAL
ESTSTE
RESTAURTANT
This Photo by Unknown Author is licensed under CC BY-SA

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

8. SERVICES
1. GOLD
LOAN
2. MONEY
TRANSFER
3. FOREIGN
EXCHANGE
4. M POWER
CARD
TRAVEL
SMART

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

14. MUTHOOT PROVIDE OTHER SERVICE
PAN CARD
INSURANANCE
SHARE TRADING

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
260
216
233 243
272
288
336
408
496
MAR-13
JUN-13
SEP-13
DEC-13
MAR-14
JUN-14
SEP-14
DEC-14
MAR-15
JUN-15
SEP-15
DEC-15
MAR-16
JUN-16
SEP-16
DEC-16
MAR-17
JUN-17
SEP-17
DEC-17
MAR-18
JUN-18
SEP-18
DEC-18
MAR-19
JUN-19
SEP-19
DEC-19
MAR-20
JUN-20
SEP-20
DEC-20
Chart Title
Column2 Series 1 Column1

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

22. BENEFITS OF GOLD LOAN
◦ 1. Quick Processing Times
◦ 2. Minimal documentation
◦ 3. Lower Interest Rates
◦ 4. Zero Processing Fee & Foreclosure Charges
◦ 5. Flexible Repayments

23. MUTHOOT FINANCE ANALYSIS
15114 11936 10279 13168
19210
28447 30768
40574
50065
10042
7801 8705 8096
11798
17776
19721
30183
37222
0
2 3 5
0
0
0
0
0
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
PROFITABILITY AT A GLANCE
PROFIT BEFORE TAX PROFIT AFTER TAX Column1
0 2000 4000 6000 8000 10000 12000 14000
Q1 FY 2022
Q4 FY 2021
Q1FY 2021
QUARTERLY ANALYSIS
Column1 PROFIT AFTER TAX PROFIT BEFORE TAX

24. INCOME STATEMENT
0
10
20
30
40
50
60
70
80
90
2018 2019 2020 2021 2022
ANNUAL INCOME STATEMENT
REVENUE NETINCOME

25. 2022 Y/Y CHANGE
REVENUE 17.53 -6.63 %
OPERATING EXPENCESS 6.41 12.93 %
NET INCOME 8.19 -16.22 %
NET PROFIT MARGIN 46.72 -10.27%
EARNINGS PER SHARE 19.97 -17.41 %
EBITDA - -
EFFECTIVE TAX RATE 25.81% -

26. BALANCE SHEET
336.72
417.35
548.82
686.41
763.16
257.42
316.61
428.8
528.82
571.79
JAN-18 JAN-19 JAN-20 JAN-21 JAN-22
TOTAL ASSETS TOTAL LIABILITIES

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)