NewsPoliticsEntertainmentSportsHealth & LifestyleEconomy

Gold Loan Leader Muthoot Finance to Surpass 15% Growth Guidance in FY25

Muthoot Finance, India’s largest gold loan NBFC, is confident of surpassing its current full-year loan growth guidance of 15%, driven by strong demand, higher gold prices, and supportive RBI regulations. Shares hit a record high as major brokerages upgraded their targets.
12:07 PM Aug 14, 2025 IST | Aakash Khuman
Muthoot Finance, India’s largest gold loan NBFC, is confident of surpassing its current full-year loan growth guidance of 15%, driven by strong demand, higher gold prices, and supportive RBI regulations. Shares hit a record high as major brokerages upgraded their targets.
Muthoot Finance Poised for Stronger FY25 Growth, Say Analysts

Gold loan giant Muthoot Finance has hinted at raising its current loan growth guidance of 15% for FY25 after a strong first quarter. Managing Director George Alexander Muthoot told CNBC-TV18 on August 14 that growth could “be even better than 20%,” with a formal revision expected after Q2.

Also Read: Suzlon Shares Slip 4% After Q1 Results and CFO Resignation

Three Growth Drivers

The NBFC credited its robust performance to healthy gold loan demand, rising gold prices, and business-friendly RBI guidelines. The final regulatory framework, according to Muthoot, clearly signaled that both the Finance Ministry and RBI intend to support the gold loan sector as it serves the community’s financing needs.

Favorable Lending Conditions

Muthoot Finance believes the toughest phase for the gold loan industry is over, with all players now lending more responsibly. The lender also said it faces no issues in raising capital from banks, while demand remains strong as borrowers have fewer unsecured loan options.

Focus on Competitive Rates

The company aims to maintain its spread at 9.5% and pass on the benefits of lower borrowing costs to customers as banks begin cutting MCLR rates, helping keep its offerings competitive in the market.

Brokerages Turn Bullish

Jefferies has maintained a Buy rating on Muthoot Finance, raising its target price to Rs.2,950 per share, citing stronger-than-expected Q1 profit growth, falling NPAs, and credit costs. Morgan Stanley has upgraded the stock to Overweight with a Rs.2,920 target, highlighting strong ROE, EPS growth, and minimal asset quality risks despite sector-wide concerns over rising bad loans.

Also Read: Sensex up 200 points, Nifty also rose 50 points; metal and auto shares rise

Tags :
economy newsgold loan NBFC Indiahind firsthind first englishhind first newsMuthoot FinanceMuthoot Finance growth guidanceMuthoot Finance Jefferies targetMuthoot Finance loan growthMuthoot Finance Morgan Stanley upgradeMuthoot Finance Q1 resultsmuthoot finance shareMuthoot Finance share priceRBI gold loan guidelines
Next Article