We are a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala. Our operating history has evolved over a period of 72 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.Since our formation, we have broadened the scale and geographic scope of our retail lending operations so that, as of March 31, 2010, we were India’s largest provider of Gold Loans. In the years ended March 31, 2008, 2009, 2010, 2011 and in the period ended September 30, 2011, revenues from our Gold Loan business constituted 95.97%, 96.71%, 98.08%, 98.75% and 99.01%, respectively, of our total income. In addition to our Gold Loans business, we provide money transfer services through our branches as sub-agents of various registered money transfer agencies, and recently have commenced providing collection agency services. We also operate three windmills in the state of Tamil Nadu.
We issue secured non-convertible debentures called “Muthoot Gold Bonds” on a private placement basis. Proceeds from our issuance of Muthoot Gold Bonds form a significant source of funds for our Gold Loan business. We also rely on bank loans and subordinated debt instruments as our sources of funds. As per our audited financial statements as of September 30, 2011 we had ` 50,415 million in outstanding Muthoot Gold Bonds and ` 122,152 million in other borrowings. We also raise capital by selling a portion of our loan receivables under bilateral assignment agreements with various banks. We also raise capital by issuing commercial paper and listed & credit rated non-convertible debentures under private placement mode to various institutional investors.
Our customers are typically small businessmen, vendors, traders, farmers and salaried individuals, who for reasons of convenience, accessibility or necessity, avail of our credit facilities by pledging their gold jewellery with us rather than by taking loans from banks and other financial institutions. We provide retail loan products, primarily comprising Gold Loans. We also disburse other loans, including those secured by Muthoot Gold Bonds.Our Gold Loans have a maximum 12 month term. As per our audited financial statements, our average disbursed Gold Loan amount outstanding was ` 37,765 per loan account as of September 30, 2011. For the period ended September 30, 2011, our retail loan portfolio earned, on average, 1.82% per month, or 21.87% per annum.
As per our audited financial statements, as of March 31, 2008, 2009, 2010, 2011 and as of September 30, 2011, our portfolio of outstanding gross Gold Loans under management was ` 21,790.1 million, ` 33,000.7 million,` 73,417.3 million, ` 157,280.7 million and ` 207,666.2 million, respectively, and approximately 30.1 tons, 38.9 tons, 65.5 tons, 112.0 tons and 129.5 tons, respectively, of gold jewellery was held by us as security for our Gold Loans. Gross non-performing assets ("NPAs") were at 0.42%, 0.48%, 0.46%, 0.29% and 0.59% of our gross retail loan portfolio under management as of March 31, 2008, 2009, 2010, 2011 and as of September 30, 2011 respectively.
As per our audited financial statements, in the years ended March 31, 2008, 2009, 2010 and 2011, our total income was ` 3,686.4 million, ` 6,204.0 million, ` 10,893.8 million, and ` 23,158.7 million, respectively, demonstrating an annual growth rate of 57.56%, 68.29%, 75.59% and 112.59%, respectively. As per our audited financial statements, in the six months ended September 30, 2011, our total income was ` 20,245.4 million.As per our audited financial statements in the years ended March 31, 2008, 2009, 2010 and 2011our profit after tax was ` 630.6 million, ` 978.7 million, ` 2,285.2 million and ` 4,941.8 million, respectively, demonstrating an annual growth rate of 43.80%, 55.20%, 133.49% and 116.25%, respectively. As per our audited financial statements, our profit after tax in the six months ended September 30, 2011 was ` 4,060.06 million.As per our audited financial statements as of March 31, 2008, 2009, 2010, 2011 and September 30, 2011, our networth was ` 2,131.1 million, ` 3,614.5 million, ` 5,841.9 million, ` 13,341.9 million, and ` 26,120.3 million respectively.
Our Strength
We believe that the following competitive strengths position us well for continued growth:
Market leading position in the Gold Loan business with a strong presence in under-served rural and semi-urban markets
Gold loans are the core products in our asset portfolio. We believe that our experience, through our Promoters, has enabled us to have a leading position in the Gold Loan business in India. Highlights of our market leading position include the following:
We are the largest gold financing company in India in terms of loan portfolio, according to the IMaCS Industry Report, (2010 Update). As per our audited financial statements, our loan portfolio as of September 30, 2011 comprised approximately 5.5 million loan accounts, in India with Gold Loans outstanding of ` 207,666.2 million.
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We have the largest branch network among gold loan NBFCs, according to the IMaCS Industry Report (2010 update). As of September 30, 2011, we operated 3,274 branches across 20 states, the national capital territory of Delhi, and four union territories in India. Our branch network has expanded significantly in recent years from 373 branches as of March 31, 2005 to 3,274 branches as of September 30, 2011, comprising 589 branches in northern India, 2,114 branches in southern India, 422 branches in western India and 149 branches in eastern India covering 20 states, the national capital territory of Delhi and four union territories in India.
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We believe that due to our early entry we have built a recognizable brand in the rural and semi-urban markets of India, particularly in the southern Indian states of Tamil Nadu, Kerala, Andhra Pradesh and Karnataka. As of September 30, 2011, the southern Indian states of Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, and the Union Territory of Pondicherry constituted 71% of our total Gold Loan portfolio.
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We have a strong presence in under-served rural and semi-urban markets. A large portion of the rural population has limited access to credit either because of their inability to meet the eligibility requirements of banks and financial institutions because credit is not available in a timely manner, or at all. We have positioned ourselves to provide loans targeted at this market.
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We offer products with varying loan amounts, advance rates (per gram of gold) and interest rates. The principal loan amounts we disburse usually range from ` 2,000.0 to ` 200,000.0 while interest rates on our Gold Loans usually range between 12.00% and 26.00% per annum..
