Gold loan growth in line; NIM stable aided by yield expansion

Company
11 Mar 2024
5 Min read 
  • Muthoot Finance reported a 2.5% QoQ growth in gold loans, with expectations of stronger growth in 4QFY24.
  •  The company's net interest margin remained stable at around 11.2%.
  •  The cost-to-income ratio declined to around 29%.
  •  Standalone PAT grew 14% YoY and 4% QoQ to INR 10.3 billion.
  •  The company expects a 15% YoY growth in gold loans for FY24 and similar levels of growth in FY25.
  •  With limited upside catalysts and a competitive landscape, the company maintains a Neutral rating with a revised target price of INR 1,440.
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