Muthoot Finance Gets RBI Nod to Open 115 New Branches

Muthoot Finance, India’s leading gold loan non-banking financial company (NBFC), has secured approval from the Reserve Bank of India (RBI) to expand its branch network by adding 115 new branches across the country. This expansion aligns with the company’s focus on reaching more customers, particularly in underbanked and underserved regions. By increasing its physical presence, Muthoot Finance aims to strengthen its foothold in the gold loan segment and provide better access to financial services.

Why is Muthoot Finance Expanding Its Branch Network?

The RBI’s approval, granted on February 25, 2025, is a key development in Muthoot Finance’s long-term expansion strategy. The company has been consistently working to expand its branch network to cater to a larger customer base. With gold loans being a preferred credit option in India, having more branches ensures greater accessibility for people who rely on gold for financial liquidity.

To comply with regulatory requirements, Muthoot Finance will ensure that all new branches are equipped with advanced security features and safe deposit vaults for gold jewelry storage. The move also aligns with the company’s commitment to responsible and secure gold loan disbursement.

How Does This Fit Into Muthoot Finance’s Past Growth Plans?

Muthoot Finance has been on a steady growth path, securing approvals for branch expansion in the past as well. In July 2022, the company received RBI’s clearance to open 150 new branches, marking a major expansion after a three-year gap. This move helped Muthoot Finance enhance its market presence, particularly in rural and semi-urban areas, where access to credit remains limited.

Further, in the first quarter of the 2024-25 fiscal year, Muthoot Finance added 218 branches, with a larger plan to establish 300-400 new branches by the end of the fiscal year. This structured expansion approach highlights the company’s commitment to growing its reach while maintaining strong compliance with regulatory guidelines.

What Does This Mean for Muthoot Finance’s Financial Performance?

Muthoot Finance’s expansion plans are backed by strong financial performance. For the quarter ending December 31, 2024, the company reported a net profit of ₹1,389 crore, marking a 26% increase from ₹1,104 crore in the same period last year. Revenue from operations surged 36% year-on-year, reaching ₹5,190 crore. This financial strength positions the company well to invest in expanding its operations while ensuring profitability.

Looking ahead, Muthoot Finance has set a target of achieving 15% growth in assets under management (AUM) for the 2024-25 fiscal year. With new branches opening and an increasing demand for gold loans, the company remains optimistic about its growth prospects.

With strong regulatory backing, financial stability, and a clear expansion strategy, Muthoot Finance is set to further strengthen its position as India’s leading gold loan provider. The company’s move to open 115 new branches will play a significant role in improving access to credit and financial inclusion across the country.

Muthoot Finance RBI Approval – Key Highlights

Key Aspect	Details
Why in News?	Muthoot Finance received RBI approval to open 115 new branches across India.
Approval Date	February 25, 2025
Purpose	Expand branch network to enhance accessibility, especially in underbanked areas.
Past Expansion	– July 2022: RBI approved 150 new branches. – Q1 FY25: 218 new branches added, with a plan to reach 300-400 by year-end.
Financial Performance (Q3 FY24)	– Net profit: ₹1,389 crore (+26% YoY) – Revenue: ₹5,190 crore (+36% YoY)
Future Target	15% growth in assets under management (AUM) for FY25.
Compliance Measures	Secure storage facilities and adherence to RBI regulations for safe gold loan disbursement.
Significance	Strengthens Muthoot Finance’s leadership in the gold loan sector and expands customer reach.