Ladies and gentlemen, you are connected to Muthoot Finance's Q1 FY 2026 earnings conference call. Please stay connected. The call will begin shortly. I repeat, ladies and gentlemen, you are connected to Muthoot Finance's Q1 FY 2026 earnings conference call. Please stay connected. The call will begin shortly. Thank you so much. Ladies and gentlemen, you are connected to Muthoot Finance's Q1 FY 2026 earnings conference call. Please stay connected. The call will begin by 5:15 P.M. Ladies and gentlemen, I repeat, you are connected to Muthoot Finance's Q1 FY 2026 earnings conference call. Please stay connected. The call will begin by 5:15 P.M. sharp. Thank you. Ladies and gentlemen, good day and welcome to the Muthoot Finance Q1 FY 2026 earnings conference call hosted by Elara Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shweta Dhupredar from Elara Securities India Private Limited. Thank you, and over to you.
Thank you, Amishta. Good evening, everyone. On behalf of Elara Securities , we welcome you all to Q1 FY 2026 earnings conference call of Muthoot Finance. From the esteemed management, we have with us today Mr. George Alexander Muthoot, Managing Director, Mr. Alexander George, Whole-Time Director, Mr. George M. Alexander, Whole-Time Director, Mr. George M. George, Whole-Time Director, Mr. George M. Jacob, Whole-Time Director, Mr. Eapen Alexander, Executive Director, Mr. K.R. Bijimon, Executive Director, and Mr. Oommen Mammen, Chief Financial Officer. We express our gratitude towards the esteemed management of Muthoot Finance to provide us the opportunity today to host this conference call. Without further ado, I now hand over the call to Mr. George Alexander Muthoot, Managing Director, for his opening remarks, post which we can open the floor for Q&A. Thank you, and over to you, sir.
Thank you. Good evening, sir. This is George Alexander Muthoot, Managing Director of Muthoot Finance. Today, we had our company's board meeting for the Q1 of 2025. The meeting just got over, and I am here to present the report for the Q1 performance of Muthoot Finance. We had an impressive start of the year, and the standalone loan effects on the management had reached a record of INR 1,20,031 lakh crore, driven by a robust 40% year-on-year growth in gold loan of INR 32,272 crore for a full year, and a 10% quarter-on-quarter increase of INR 10,238 crore. This is a testament to our three-pronged strategy to focus on dispersion, operating efficiency, and maintaining healthy margins. As a result, our standalone profit after tax for this quarter grew by 90% to reach INR 2,046 crore.
These results reaffirm our leadership in the gold loan segment, supported by the Pan-India branch network, strong brand equity, and deeper customer engagement. We are encouraged by the growing acceptance of gold loan as a reliable, accessible, and inclusive form of credit. Looking ahead, we are accelerating our efforts to digitally enable our gold loan offerings, making credit access faster, more seamless, and more inclusive. Our technology investments are already enhancing our customer experience, reducing turnaround times, and strengthening operation efficiencies. The recent RBI guidelines on gold loans will bring greater transparency and further streamline the lending process. While the recent interest rate cuts create a favorable credit environment, with these supportive tailwinds and a continued focus on innovation and services, we are well-positioned to sustain strong growth through financial year 2025 and beyond. This year, we have seen we have crossed the market capitalization of one trillion.
We opened 22 branches and won many rewards and accolades. Subsidiaries are also doing well. The Belstar Microfinance has opened 10 gold loan branches in the Q1 to diversify the loan portfolio. It has maintained a stage three loan effect at 4.4%, which is consistent with the industry's yield. And Muthoot Homefin , the loan AUM stands at INR 3,096 crore versus INR 2,100 crore in the last year's same quarter, a 41% year-on-year growth. Muthoot Money, the loan AUM is INR 5,000 crore in Q1 versus INR 1,657 in Q1, a growth of 202% year-on-year. Continued declining NPA through physical collections recently witnessed consistently throughout the year. GNPA has increased to 0.96% in Q1. That is for Muthoot Money. The branch network also increased to 997 during this quarter.
Overall, this year has been quite good for Muthoot, and I think all the other details are there in the slides and presentations we have given. I will stop now, and maybe wait for your clarifications and questions. Thank you.
Thank you very much. We'll now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question phase, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Raghav from Ambit Capital. Please proceed.
Sir, good evening and thanks for the opportunity. I have a few questions. One is, this quarter, the yields have expanded by 100 basis points sequentially. I also noticed that there have been some significant NPA recoveries of about INR 550 crore that have escaped. My question is, was there any booking of income in the interest income line related to the NPA recovery? If yes, how much was it?
That's all. That's all. That's all the question. Any more questions?
Yeah, the other question I had was the sequence in additional customers. I noticed that previously these were growing at about 2% in Q4 and Q3 on a quarter-on-quarter basis. This time, it has come down to 1.4%. What will be your guidance going ahead? Yeah, those were my only two questions.
Thank you. The second question is, Mr. Alexander, what is this 2% and 1.4%?
If you look at your number of active customers in Q3 and Q4 of last year.
Number of customers.
Yes.
Okay. Okay. Understood. Understood. Thank you. Thank you. Regarding the yield, the yield was 19.56%, and usually, our yield is 18.5%. This year, this quarter, the yield has been better. As you exactly said, there has been a INR 700 crore NPA reduction, and the interest accrued on that, which has come into the P&L, is around INR 300 crore. Number two, we have given some of our loans, sold some of our loans to the ARC about a year back, and now today, all the principal has been received in the last quarters. This quarter, we received INR 100 crore from the ARC, which is fully towards the interest. INR 300 crore plus INR 100 crore, INR 400 crore is the extra interest we received this year, and that should account for the higher yield of 100 basis points more. About the number of customers, it's just.
Sequentially, I think the outstanding number of customers has increased by about 1%. We've been repeating saying that you should look at the new customer relations, which is actually the net outstanding number of new customers added, is about 4.2%.
You.
Hello, Mr. Raghav?
I'm still here. I could not listen to the management in the last 10 seconds.
Sorry to interrupt. The line for the management has been disconnected. Please wait till I connect the management back. Ladies and gentlemen, the line for the management has been reconnected. Thank you. Raghav, you may proceed.
Yeah, I heard the management was saying something.
Yeah, you heard about the interest yield, etc.?
Yes, yes. I heard the INR 400 crore.
The next point was about the customer relations. The new customer relations in the last quarter was 4.1 lakh, and this quarter is INR 4.4 lakh.
INR 4.24 lakh.
INR 4.24 lakh. There is an increase in the number of new customer relations. What you said is really the net growth in the customers. New customers are coming and old customers are going out. We are better off in the new customer relations. That's what I wanted to tell you.
One more follow-up question. If I remove the INR 400 crore of exceptional income, right, is there any comparative pressure because after removing INR 400 crore, the yield is somewhere around 18.15%- 18.2%, which is lower than the run rate that you had.
INR 400 crore.
Okay. INR 400 crore is just an approximate number.
Maybe INR 300 to around roughly INR 350 crore.
Understood. Okay. Generally, what is your sense in terms of competition? One of the other guys in gold loan space said that they want to reduce rates and, you know, be more. Are you seeing any such competitive activity on the ground?
The gold loan business is purely the play of the market. All competitors are trying to come there. People come with different strategies. Muthoot Finance has been a long player in this, a very old player in this, and we have our own strategies. I don't think we need to respond to small strategy changes by others. We will go our way as we are. We have been in the market for such a long time. I don't think these things happen to us.
Understood. That was all from my side, thank you and best of luck.
Thank you.
Thank you. We take the next question from the line of Mona Khetan from Dolat Capital. You may proceed.
Hi, sir. Good evening. Congratulations on a strong quarter. How do you message the yield? Sorry, is there a system?
Hello? Am I audible?
Your voice is breaking. Could you please fix that?
Any better?
Much better.
Yeah, just confirm back on the yield. Extra interest that you earned this quarter, is it fair to assume that your yields would have been similar, in the same range as what you've been reporting?
Yeah, correct. Yes, it would have been the same as what we were contributing in the last quarter. Yes, you're right.
Yeah, got it. Secondly, just touching on the final guidelines on gold loans, I understand they're far more relaxed versus the draft circular. Just to take cues as to what changes are you anticipating in terms of LTV, you know, once it comes into effect?
I think she wants to know my view on the new regulation. I feel it is quite gold loan business-friendly. The new revised guidelines are quite gold loan business-friendly. Can you hear?
Yeah.
Yeah. It gives more flexibility and actually more product offering to the customers in the new regulations. Up to INR 2.5 lakh, the LTV has been revised from 75% - 85%. Any company who wants to do even up to 85%, there is flexibility. That is what I said. It gives more flexibility, and we can give more products to the customer also. For your information, 85% of our customers are below INR 2.5 lakh.
Okay. Just two follow-ups here. Will it lead to movement towards higher ticket sizes? Because in the last ticket sizes, there is not much, you know, LTV, especially if it's given for the income-generating purpose and stuff. Does it lead to, you know, an increase in ticket sizes across lenders given the guidelines? Also, for this sub INR 2.5 lakh segment, does the effective LTV, which you were alluding to as 55% earlier, does the effective LTV, including the interest component, come down to, say, 65% versus the 75% business we had, the cash we had earlier, three guidelines or what we are?
I'm not sure what is the 65% and 65%, etc. Today, the maximum LTV which can be given is 75%. What I said, up to INR 2.5 lakh, there is flexibility to up to 85% LTV. That's what I meant. About the bigger ticket customers, yes, bigger ticket customers are there now also. Not that everybody will take the 75% -- 85%. They will take only what they want. Sometimes it will be 60%, sometimes it will be 70%, sometimes it will be 75%.
Will it also lead to increased product offerings, like more of your monthly products, given that, you know, it may not have the inclusion of interest component?
As I said earlier, it uses flexibility, and we have to offer more products. Anyway, this is all fixed only by next March.
Right. Right. Just one last data-skipping question. What would be the share of your loans above INR 5 lakh? AUM mix above INR 5 lakh?
You mean the,
Yeah, ticket sizes set with the same loan amounts. AUM mix above INR 5 lakh ticket sizes.
Loan amount about INR 3 lakh I'm having, that is about 40%.
Okay. If you could join the call, if you could share at some point above INR 5 lakh also, that would be very helpful.
I don't have that information. That is not available here today.
Okay. No problem. Thanks so much and all the best.
Thank you. Before we proceed with the next question, a reminder to the participants, in order to ask a question, you may press star and one on your touch-tone telephone. We take the next question from the line of Shreepal Doshi from Equirus . Please proceed.
Hi, sir. Thank you for giving me the opportunity. My question was on ticket size. Incrementally, since the benefit of the newer regulation is for, let's say, less than INR 2.5 lakh ticket size, would we, as an organization, also focus more in the smaller ticket size, versus earlier when we were able to achieve across all ticket sizes? Would that be a process?
No, we have not thought about it because we feel that we cater to all the type of customers, the small customer, the big customer, everybody with us through our branches and our legacy of operations. We have all these customers. We have not thought about giving only to small customers or only to big customers. It's catered to all, and we definitely have a mix of all these customers going forward. We haven't thought about that, sir.
Got it, sir. The second question was on the rate side. I mentioned we are in a rate cut cycle already. Will we pass on this benefit on the cost of funds side to the end customer? Also, because you also alluded that the competition has increased, in all, are we looking to have some rate cuts going ahead?
Yeah, we try to always maintain our spread and our yield. Our spread is about 9.5%. We try to maintain that always. If, going forward, our cost of funds is coming, cost of borrowing is coming down, we certainly will pass it on to our customers because we have been doing that all the way. If there is a rate cut or our cost of borrowing is coming down, we will pass it on to our customers.
Got it. One last question was on the NPA front, which has benefited on the interest income side as well. What really helped us to bring down this NPA by almost INR 700 crore on a QoQ basis? What effort or what measures have we taken that led to such a sharp reduction?
It was not that we engaged with corporate to go and collect our money, etc. It is people coming forward. They wanted their gold back. They came forward. We gave them times to clear the loans. What was our NPA was just because we had given these customers times to redeem their gold instead of optioning. In quick time, some time, they came back. They took back their gold. Because of that, they were able to save the gold. That is what we see in this. It is not that we don't need to do any recovery movements, etc.
Got it. Got it. Thank you so much for answering all my questions.
Thank you. We take the next question from the line of Kushagra Goel from CLSA. Please proceed.
Hi. Thank you for taking my question.
Sure, sure.
Yeah. Congratulations on a good set of numbers. Most of my questions are already answered. Just one question. Your OpEx was also better this quarter. Can you give us some guidance on this? How you are looking at it going forward?
Let's see. OpEx , yeah, it will be better because the AUM is going up. The per branch business is also going up. Per branch business, which is much lower earlier, today more than INR 25 crore. As the per branch business goes up, proportionately a part of the OpEx also will come down. Of course, there is inflation and other things to consider. If any company wants to reduce the OpEx , they have to increase the per branch business. If this time the OpEx has come down, it is because we had a INR 10,000 crore growth in the AUM.
Right. Okay. Any particular guidance on this front?
I'd say the OpEx here is almost stable. The absolute, it will go up only by the rate of inflation. It will only go up by the rate of inflation.
Thank you. We take the next question from the line of Mayank from Trust Mutual Fund. Please proceed.
Hello. Am I audible?
Yes, yes.
Thanks for the opportunity, sir. You indicated that there were a good amount of repayments from the customers who were NPA or who were not able to repay. Can you give some color on the geography, where you were seeing the higher repayments? Any specific customer, second ticket sizes, or industry? Basically, I'm trying to understand if the rural segment is picking up. They are saying you are saying good or good changes about the industry. What I can say? The rural customer is picking up or what is leading to the higher repayments?
I don't think we have any data on that. This is a general feeling, we don't have much granular data.
Yeah. On the mind, we are too scattered across various geographies, and you know there is not much of a pattern which is emerging. You know in every geography, there is an NPA, and you can't attribute any particular reason for that. Don't give too much importance for this NPA going up or NPA coming in reduction. What you need to focus, you know I should have mentioned this in the earlier response. You know, see, though in gold loan business, you categorize the loans as NPA, and you know you reverse the interest accrual on those loans. You make an ECL provisions. The important thing is that later it will come back. You know, interest, you know, the accrued income will come back, and also the ECL provisions will get reversed. That is the importance you need to attach to NPAs in a gold loan book.
Okay. Thanks. Thanks a lot.
We take the next question from the line of Kushan Parikh from Morgan Stanley. Please proceed.
Thank you for taking my question. I had a few data-keeping questions and a couple of queries as well. Just on the borrowing cost, we saw 11 basis points benefit in Q1. What would our incremental borrowing cost be now? If it would also set the external benchmarking rate borrowing, just trying to understand how much benefit we can get on the borrowing cost in the coming quarters. Secondly, also on the ARC sales, we accrued about INR 100 crore interest in Q1. Is there more benefit in terms of interest accrual in the coming quarters that we expect, could you quantify that? Lastly, just a few data-keeping questions. If you could share the AUM by ticket size as you usually do on the call, and also the option number for Q1. Yeah, that's all from my side.
Okay. Yeah. So borrowing cost, I think there's, as you said, there's 11 that's declined. Most of our loans are linked to the MCLR. That's when the MCLR comes down of the bank, it will come down. We are expecting that to happen in the next three to six months. We don't have anything linked to EBLR. You know, so far, we have not got that privilege. On the NCD market, we have been able to bring down our rate. Recently, we have done a two and a half year at around 7.85%. So borrowing cost is coming down. No.
Asset prices, when the borrowing cost really comes down, we always maintain our spread of 9.5%. If the borrowing cost is coming down considerably, we pass it on to our customer. The second part is about the ARC.
This quarter, we have received about INR 100 crore from the ARC. Probably another INR 100 crore- INR 150 crore is yet to receive in the coming quarters. The initial price would have been fully realized; another INR 100 crore -INR 150 crore may come in the coming quarters. Was there one more quick
ticket-wise about realized? As I said, it is 40%. Between INR 1 lakh -INR 3 lakh, it is 34%. Less than INR 1 lakh, it is 26%.
Understood, sir. Just the last item on the option for the quarter.
Options are only around INR 13 crore-INR 14 crore.
It's about INR 13 crore only.
Got it. Thank you. Those are my questions. Thank you.
Thank you. We take the next question from the line of Harshit from Premji. Please proceed.
Hello, sir.
Hi. Am I audible?
Yes.
Oh yes, yes.
Okay. Firstly, congratulations first for an exceptional statement. Just one question on the NPA side, if you can help with the breakup between the gold loan and the non-gold loan piece within the standard loan business. I think last year we mentioned it was around INR 300 crore was roughly the shade for the non-gold loan business. If you can help with that number. Second, sir, I think that piece is also growing at a pretty fast pace. It says it's now 5.7%. Any view on what is the mix you want to keep on the non-gold loan piece over there, and the many asset quality trends we are seeing over there.
Our non-gold loan business is about 13 %- 14%. I think we would like to keep it. Hello?
Yes, sir.
We would like to keep it 15 %- 20% going forward also. Our first preference, first priority will be the gold loan. We decide to do the gold loan. If we take out the microfinance, our non-gold loan portfolio is only about 5%.
Right. Got it. Sir, on the standalone book itself, what would be the stage three in the non-gold loan book? You mentioned this number around INR 300 crore last year.
I think non-gold, I think the NPAs have come down by about INR 30 crore. That also has helped in reversing the ECL provision by about INR 30 crore because in non-gold, we make 100% provisions.
Okay. Over there, we are about to see some recovery quarters. Understood. Got it. Got it. Okay, sir. This is good. Thank you.
Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to one per participant. We take the next question from the line of Abhijit from Motilal Oswal. Please proceed.
Thank you. Sir, first, let me get clarification. Earlier during this call, you suggested that INR 100 crore recoveries from ARC and about INR 300 crore interest income write-backs from NPA recoveries. Later during the call, cumulatively distributed INR 350 crore. For the benefit of all of us, if you could just give us the exact number, how much was the interest income write-back from NPA recoveries? Instead of me all making our own assumptions, that would be very useful. If you could just address that before I can start asking my other questions.
Obviously, we don't exactly track the collections from NPA, but you know, roughly, if you collect INR 700 crore, maybe 35% - 40% is the recovery on those loans. That is why we have given around INR 300 crore. ARC amount is an exact amount, around INR 100 crore.
Okay. Thank you, sir.
Next, I wanted to understand that if I look at the NPA recoveries, almost INR 600 crore-INR 610 crore on a net basis, they have declined. While the gold loan auctions were just about INR 13 crore, what you said. When you say recoveries, this is more in the nature of customers coming back and repaying us, right? In a quarter, almost INR 600 crore worth of loans where customers have come back and repaid when they were NPAs. Is this understanding correct?
Yeah, you're correct. Just don't consider this NPA as a default customer, etc., as a willful default or something like that. The customer who has not been able to pay during the loan period, we just gave him more time so that he is given the opportunity to take it back, and he used that opportunity.
Let us not see more than that he's somebody whom we had to go and collect it or he was not because his word is here. He'll come and collect it. He'll take back the gold from us. That is why he has come. It is not that he needs to go and collect it, etc. We gave him some time, and he utilized the time to maybe take it back. That's it.
Got it. Sir, lastly, in terms of the other two, first to this question, when you said, while the AUM growth was very strong, tonnage has not really gone up too much, maybe a 0.5% QoQ growth in tonnage. Is it primarily because of the gold price increase that we saw during the first quarter? Because your NPAs have also largely been in the same ballpark, not too much of an increase in the LTV. That is one. The other thing is now in terms of Muthoot Money, sir, you have shared in your opening remarks 997 branches. Will you be applying to the RBI for opening new branches because it is just three branches out of 1,000 branches where we need RBI approval?
Secondly, sir, INR 5,000 crore of portfolio in Muthoot Money, is it all gold loans or do we have other products as well, the old products that we used to do in Muthoot Money earlier?
We started Muthoot Money, the last two sheets. Muthoot Money, we had a record portfolio of about INR 600 crore. Now, it has run down. It's about INR 150 crore. It's less than INR 150 crore only. If the INR 5,000 crore is there, the balance is all gold loan. About the branches, we just opened the branches. We are just waiting for the branches to maybe mature. Once it matures and we feel that we need more branches, we will go to the RBI. The other question was about the.
AUM growth.
AUM growth.
AUM.
It's all gold. It's the AUM growth and tonnage.
tonnage.
Yeah, yeah. This is a very interesting subject. I think frequently we will have something also on this. See, our loans are actually only very short-term, three months, four months, etc. A person who has given 100 grams of gold and taken 80% of INR 5 lakh of money three months back, next time when he or his friend comes for INR 5 lakh, he may not go 100 grams because the LTV has gone up. He used to go only 90 grams. The same five, I can't ask the customer to give me 100 grams because every day the LTV is going up. Because the new customers are coming, they come at a lower tonnage. That's the difference. You can't.
They need to tender a lower amount of gold than what was six months back.
You can't expect tonnage at all points of time to increase, but you need to see what is the average LTV on the book. Even now, the average LTV on the book is 63%.
That's what you also said.
Going by what you mentioned, it should always be a 75% because that is the maximum LTV. No, which itself shows that not every customer is going to take the full LTV. New customers, because we are giving the 75% LTV, will tender only a lower quantity of gold.
That is why, because if the gold price is going up, the LTV will definitely, the tonnage will come down. If the gold price is coming down and people need the same amount of money, they are getting more gold. Our tonnage will go up.
Got it. This is very understood.
One more point.
All three answers.
No, sir. All has been answered. Just a quick clarification on what you answered. Right now, we are doing gold loans from the standalone entity, which is Muthoot Finance and Muthoot Money. Going forward, there are plans to start gold loans in Belstar Microfinance as well.
Yes, yes.
We have already started.
We already started, sir.
Yes, you have.
How many branches do you have for gold loan now?
Around 10.
10 is where? Now, as of date, it is 15.
1, 5, 15, and you have plans to add 10 more?
No, no. Last quarter's 10, as of date, 50.
50 more there.
50 more they're planning to add immediately.
Right. This is useful. Thank you so much, and I wish you and your team the very best.
Thank you. We take the next question from the line of Rajiv Mehta from YES Securities . Please proceed.
Yeah. Hi. Good evening. Most of my questions are answered, just two things. If the standalone company's employee cost is moving in line with the AUM growth for the last three quarters, can we expect some operating leverage, or are most of the employee costs related to the value growth and hence, as a proportion of overall AUM, it keeps on moving in the same line?
Employee cost, there is always an increment, etc., to employee bonus, incentives, etc. Of course, Muthoot Finance has some incentives to the staff also. Employee cost also definitely will go up because there is always a yearly increment, yearly bonus, yearly incentives. I think it is moving in tandem only.
Yeah, it was just an observation because last three quarters, it's been growing in line with the AUM, and the AUM has grown really well. The incentives of the scheme that we run for the employees, is it linked to value growth itself, or is it more linked to the number of customers or volume numbers?
I don't think we look into the granular reasons for the increase in employee costs, etc. We have to pay the employees reasonably well, otherwise they'll run away. If you pay them well, they'll do a good job. That's what we try to do. We haven't looked at the correlation between the total AUM and the employee cost. Now that you have said it, we look at the forest in the next quarters.
Sir, how do you look at this customer acquisition run rate? You see, it's been very heavy, but last three quarters, it's been very steady only. On one side, you are saying that competition is coming, but we're not very pushed up by it. On the other side, the gold loan demand is also increasing. If the gold loan demand is increasing, and if the competition is not impacting us, ideally, we could see this customer acquisition run rate, yeah, customer reactivation run rate go up to the next level. Do we see that happening?
I think that is what we tell our branch people also, to have more customers. Anyway, we always tell them we get some, but sometimes we are not able to get all the customers. Anyway, we are reasonably happy with the fund rates and the growth rate, etc.
Yeah. Just last thing, how do you expect the provision cycle to play out in Belstar? Can you share some collection trends?
Collections are improving, actually. They have better collections. I'm sure that Q3, they will be able to come back to these, maybe starting some profits and so on. Collections are improving. Actually, especially the advance of June from November 2024 onwards, you have a very good collection percentage.
Excellent collection percentage on the new loans, which is coming in the last.
Almost 99.8%.
99.8%.
Oh, yes. Thanks so much.
Thank you. We take the next question from the line of Rushabh Doshi from Nirmiti Investment Advisors LLP. Please proceed.
Yeah. Hi. Am I audible?
Yes, yes, yes.
Coming up on a very set of numbers. Since we are growing very fast, another effect is that we are consuming a lot of capital. So ITR, CRAR are close to around 22%. When would we go for a fund raise? I believe it's been 10 years since we've done our last fund raise. Also, like, would you be preparing a rights issue or you would prefer a QIP or something like that?
I think we are very comfortable with the capital, and even with the growth planned, you know, we'll be very comfortable even after declaring dividends.
Okay. My second question was that, like in the annual report, I noticed that we've been adding some debt mutual funds. Was this kind of a one-off opportunity, or are we going to build on that?
What is that, debt mutual fund?
In the understanding before, we have around INR 1,800 crore of debt mutual fund. Was this kind of one-off investment because I guess there was a good yield opportunity at that time?
General temporary parking of funds. See, our core business is, you know, lending.
Owners.
As and when we require the money, we'll redeem all those investments and utilize for.
That's only temporary parking of excess funds.
Thank you. We take the next question from the line of Abhijit from Motilal Oswal. Please proceed.
Yeah. Thanks for the follow-up. Just one data point I needed. What is the split of gold loans where the ticket size is less than INR 50,000? Also, earlier during the quarter, I remember MD sir saying that the AUM split, which is the number of customers where the ticket size is less than INR 2.5 lakh, is 85%. While you have already shared the split of gold loans versus the AUM by value, if you could also share some cut based on the number of customers based on the ticket size of gold loans.
Based on number of customers, AUM number of customers, 85% of the customers is like as in below INR 2.5 lakh, and about 15% is about INR 2.5 lakh.
You want to know INR 50,000? You have to know INR 50,000. My God, that's granular numbers. INR 50,000 does not work much. Give us a minute. Let's see if we have it.
Loans less than INR 50,000 is probably about 11 -odd percent .
11%.
Yes, this is all from my side. Thank you so much.
Thank you. We take the next question from the line of Shreepal Doshi from Equirus. Please proceed.
Hi, sir. Thank you for giving me an opportunity once again. The question was on these delinquent customers. Basically, I think 65,000 - 70,000 accounts would have repaid or would have, you know, turned; they repaid the interest component from being part of the NPA pool because INR 700 crore has been reversed, right? I just wanted to understand, once they have repaid the entire interest, are they further eligible for fresh loans as per our policy?
They have not renewed. They have taken back the gold. They have closed the gold and taken back.
Sorry, sir. I couldn't understand that question.
The customers who also have the NPA, it's not that they have paid the interest. They collected the interest, collected the interest principal, and returned back the gold to them.
Okay, they have also collected the gold.
Yeah, yeah. We got the principal interest and they collected it. Maybe they should collect the gold that they're taking back, sir.
All right. Got it, sir. Thank you for answering all this, sir.
Thank you. Ladies and gentlemen, due to time constraints, we take that as the last question and would like to hand the questions over to the management for closing comments.
Thank you. Thank you. We value all the suggestions, comments, and questions from our valued investors. We from Muthoot Finance are happy that you all participated in this. We from our side assure you that the company and the management will do all our best to see that the interest of all our stakeholders are protected, whether it is the investors, the banks who have lent us money, our customers, or our employees. We will put in all our efforts to see better and better results in the next quarter. Thank you and wishing you all a good Independence Day. Thank you.
Thank you.
Thank you. On behalf of Elara Securities India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect.