Muthoot Finance announced on Wednesday that it has received approval from the Reserve Bank of India (RBI) to establish 115 new branches.
"It is advised that you have been granted permission for opening 115 new branches as requested. You are also advised to inform the bank of the details of the branches so opened." RBI said, in a communication to the company.
The central bank directed Muthoot Finance that, in addition to using complete security and installing proper storage facilities for gold jewelry, including safe deposit vaults, it should also comply with the existing regulations.
The Muthoot Finance shares did not change much on Tuesday and finally settled at ₹2,177.55 a piece on the National Stock Exchange (NSE). The company has reported a net profit of ₹1,389 crore for the quarter ending December 31, 2024, up by 26% over previous figures of ₹1,104 crore for the same period of last fiscal year.
"Amid favorable macroeconomic indicators, the union budget’s positive tax reform announcements are expected to start a consumption cycle, combined with a steadfast commitment to the fiscal deficit target; the general economic outlook looks promising. Also, RBI’s focus on enhancing liquidity and the move to slash the benchmark interest rate for the first time in 5 years paint an optimistic outlook," said George Jacob Muthoot, Chairman, The Muthoot Group.
During the reporting period, the operational revenue of the company witnessed a phenomenal growth of 36% year-on-year. The revenue increased to ₹5,190 crore from ₹3,820 crore in the corresponding quarter of FY24. Interest income, too, was a growth driver, reaching ₹5,067 crores.
