The Success Story of the Muthoot Group

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The Muthoot Group is a flourishing business empire that has pervaded into each and every big & small town of the country, is home to 20 diversified divisions and 5000+ branches with a global presence. Over 2 Lakh customers visit The Muthoot Group branches every day. Over the last few years, gold loans have caught the imagination of investors, especially after the listing of the top players in this segment.

How it all began

The Muthoot Group, which has a family legacy of 800 years, was founded in 1887 by Late Shri Ninan Mathai Muthoot, as a modest trading business in the remote village of Kozhencherry in Kerala. The company, the leading gold loan provider in the country, became a success story after M.George Muthoot, son of the founder Ninan Mathai Muthoot, built up the idea of gold loans in the 1950s in Kerala when more and more Malayalees were leaving their homes for foreign shores. People needed cash, on the instant, to arrange for the visas and travel. This is when the Muthoot Group introduced gold loans that changed the course of the banking industry in India. Gold loans are seen as an easy option due to shorter processing time, limited document requirements, and flexible tenure. Default rates are also low as gold is viewed as an emotional asset.

However, the company witnessed a complete transformation in terms of scale since M.G. George Muthoot, son of M.George Muthoot, joined the family business in 1978. A mechanical engineer from Manipal Institute of Technology, George Muthoot, 62, worked as an office boy in his own firm after school hours. Under his leadership, the company has come out of its traditional southern territories since 1979 to expand itself in the northern parts of the country. Further, the gold loan business which the company always dominated in the South now appears to be catching up fast in the North too. Today, Muthoot Finance has expanded branches not just in the north, the east, and western regions of the country; the company is present in all the states and union territories and also has a presence in the USA, UK, UAE, Sri Lanka, and Central America.

The Muthoot Group has grown from a single product company to a multidimensional business group having 18 diversified business divisions including financial services, wealth management, money transfer, forex, securities, vehicle and asset finance, media, IT, and healthcare among others.

Muthoot Finance Ltd., the flagship company of The Muthoot Group was founded in 1939, by Shri M. George Muthoot. The company today is India’s largest and the world’s biggest Gold Loan Company. With a holding of 146 tonnes of gold, Muthoot Finance is also one of the companies to hold the largest gold reserves in the country. Being an organization focused on serving the customers’ needs & financial inclusion of the unbanked masses, Muthoot Finance has revolutionized the borrowing mechanisms by making it extremely easy for the customers to take loans. Their Gold Loans start from as low as Rs. 1,500 to even Rs. 1 crore. Their hassle-free and least documentation systems allow the customer to clear loans over the counter quickly. This is what makes the Muthoot Finance Gold Loans truly a customer’s delight!

Taking forward their father late M. George Muthoot's (Founder ChairmanBanking, The Muthoot Group) vision and commitment are M.G. George Muthoot (Chairman, The Muthoot Group), George Alexander Muthoot (Managing Director), George Thomas Muthoot (Joint Managing Director), and George Jacob Muthoot (Joint Managing Director). Muthoot Finance's rise is due to two factors: its rapidly growing portfolio of gold loans and its low rate of borrower default. The first is the result of an aggressive advertising campaign to underscore the speed and ease with which the company provides the loans, as well as to point out that there is nothing wrong in families monetizing gold ornaments in times of need.

Milestones

A momentous journey of 2021

·         Loan assets portfolio crossed Rs.526.00 billions

 • Listed debentures raised through public issue of Rs.22.93 billions and through private placement of Rs.36.46 billions

 • Net owned funds crossed Rs.151.88 billions

Gross annual income touched Rs.105.74 billions

 • Profit after Tax for the year touched Rs.37.22 billions

 • Branch network crossed 4,600 branches

• CRISIL and ICRA upgraded long term credit rating from AA to AA+/Stable

Needless to say Mothoot group has received innumerable awards for their excellence in Business field and the Group has been reshaping millions of lives through its social service and philanthropic deeds since over 800 years, an era when the term Corporate Social Responsibility (CSR) was not even coined.  Over the years, The Muthoot Group has been actively involved in a number of CSR initiatives in domains like education, environment, sanitation, health and medical aid as well as financial aid to the economically backward classes.

 Impact of COVID-19

 Following the global outbreak of Coronavirus (COVID-19) pandemic, prolonged lock-down restrictions were imposed by the Government during the year, which however has not caused any significant impact on the operations and financial position of the Group for the year. Due to the uncertainties caused by the pandemic, the management is continuously monitoring the situation, including the economic factors affecting the operations of the Group.