Muthoot Finance Ltd

Overview

Muthoot Finance, the largest gold financing company in India was originally
incorporated as a private limited company in 1997 and was converted into a public
company on November 2008. Muthoot Finance ltd has been involved and offers wide range
of financial services including gold loan, money transfer, foreign exchange services, travel
services, housing finance, insurance, wealth management, personal and business loan.

Headquartered in Kerala, Muthoot Finance has over 4500 branches across 23 states
and 6 union territories in India. Muthoot Finance has a customer base of over 6 million and
is an employer of more than 25000 employees. Muthoot Finance has been recognized as
the most trusted financial service brand by the Brand Trust Report.

Management of the Muthoot Finance

The KMPs( Key managerial personnels) of the Muthoot Finance are the following:

 M.G George Muthoot (Chairman): Mr. Mathai George Muthoot is and has been
serving as the chairman of the Muthoot Finance since 2010. Mr. M.G Muthoot is a
graduate in engineering from Manipal University. He is also the National executive
member of the Federation of Indian Chamber of Commerce and Industry(FICCI).
 George Alexander Muthoot ( Managing Director): Mr. George Muthoot holds a
bachelor’s degree in commerce from University of Kerala and is also a chartered
accountant. He is currently serving as the managing director of the muthoot finance
and has been holding the position since 2010.
 Oommen K. Mammen (Chief Financial Officer): Mr. Mammen is the CFO of the
Muthoot Finance and has been with the company since 2001.He is a certified
associate of Indian Institute of Banking and Finance and has over 12 years of
experience in the industry.
  K.R.Bijimon (General Manager): Mr. Bijimon is the chief general manager of the
Muthoot Finance and is also a member of the Institute of Chartered Accounts of
India. He has over 15 year of experience in the field of financial services and is been
with the company since its inception.

SWOT Analysis of Muthoot Finance

STRENGTHS:

 Largest gold financing company in India.

 Diversified revenue streams.
 Quick sanctioning of gold loans.
 Muthoot Finance has a wide distribution network with 4500+ branches
across 21 states.
 High quality customer services.

WEAKNESSES:

 Any major decline in gold prices may impact company’s revenue.

 Over-dependency on gold loan business.

OPPORTUNITIES:

 Targeting rural and semi-urban market.

 Growth in vehicle and equipment financing business.
 To venture out banking business.

THREATS:

 Increased competition from other NBFCs and small finance banks.

 Deterioration in asset quality.
 Any change in regulation may affect its operation.
Competitive Analysis

The major competitors of Muthoot Finance Ltd are :

 Manappuram Finance Ltd

 Shriram Transport Finance Company

Manappuram Finance Ltd and Shriram Transport Finance Company are Muthoot’s
top rivals. Manappuram Finance Ltd was originally incorporated in 1992 in Kerala and
Shriram Transport Finance Company was incorporated in 1979 in Mumbai, Maharashtra.

MUTHOOT FINANCE MANAPPURAM SHRIRAM

LTD FINANCE LTD TRANSPORT
FINANCE COMPANY

MARKET 38,898.63 14,951.68 26,316.13

CAPITALIZATION (in
Cr.)

EARNING PER 49.27 9.38 113.01

SHARE (EPS)(FY.18-
19)

TOTAL ASSETS (in 38,068.70 17,645.96 105,292.48

Cr.)

NET PROFIT (FY.18- 1972.14 790.46 2563.99

19) (in Cr.)

NO. of BRANCHES 4500+ 4,351 1,545

CUSTOMER BASE 6 Million 4.3 Million 2.03 Million

 MARKET CAPITALIZATION (in Cr.)

40,000.00
30,000.00
20,000.00
10,000.00 MARKET CAPITALIZATION (in Cr.)
0.00

TOTAL ASSETS (in Cr.)

120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00 TOTAL ASSETS (in Cr.)
0.00
MUTHOOT MANAPPURAM SHRIRAM
FINANCE FINANCE LTD TRANSPORT
LTD FINANCE
COMPANY

EARNING PER SHARE (EPS)(FY.18-19)

120
100
80
60
EARNING PER SHARE (EPS)(FY.18-
40
19)
20
0
MUTHOOT MANAPPURAM SHRIRAM
FINANCE FINANCE LTD TRANSPORT
LTD FINANCE
COMPANY
 The above financial data shows how Muthoot finance is giving a stiff competition to
its competitors. The Muthoot finance has the higher number of branches and customer
base and its profit is also soaring every year. The Muthoot Finance is the largest gold
financing company having the largest gold portfolio. The Muthoot Finance has increased its
stake in Belstar Investment and Finance Private Ltd and Asia Asset Finance. The Muthoot
Finance has also ventured into vehicle and equipment finance by acquiring Muthoot Money
Ltd as its wholly owned subsidiary.

CONCLUSION

For Muthoot finance the next step would be to enter the untapped market i.e., rural
and semi-urban market. Also the company’s brand image can help it in expanding its
geographical reach. The company is also constantly trying to integrate technology to reach
new-age customers. After acquiring Muthoot Money ltd as its wholly owned subsidiary the
company can create its presence into the vehicle and equipment financing business
through aggressive marketing strategies. The Muthoot Finance is fundamentally strong and
its future seems positive overall.