Muthoot Finance Limited or MUTHOOTFIN

It was earlier incorporated as a private limited company as on March 14, 1997, with the title "The Muthoot Finance Private Limited" under the Companies Act. And subsequently, by a fresh certificate of incorporation dated May 16, 2007, its name was again changed to "Muthoot Finance Private Limited" respectively. The Company was also converted into a public limited company on November 18, 2008, with the title "Muthoot Finance Limited" & received a fresh certificate of incorporation consequent upon the change in status as on December 02, 2008 from RoC. It is one of the largest gold financing company in India in terms of its loan portfolio as it provides both personal and the business loans secured by gold jewelry or the Gold Loans, primarily to individuals who possess the required gold jewelry but could not access formal credit within a reasonable time, or the others to whom credit may not be available at all, or to meet unanticipated or the other short–term liquidity requirements. As the Company's Gold Loan portfolio as of March 31, 2010, also comprises of about 2.8 million loan accounts in India itself that it has serviced via 1,605 branches spread across 20 different states and the other two union territories in India. According to the IMaCS Industry Report 2009, on March 31, 2010, it has its most abundant branch network and among the largest among gold loan NBFCs in India. It has increased its branch network to 1,921 branches as of August 31, 2010, and uses its branch network to serve an average of about 53,989 customers per day in August 2010. As of August 31, 2010, the Company employed 12,220 persons in its operations. This particular Company is a "Systemically Important Non–deposit taking NBFC" whose headquarters are located in the southern Indian state of Kerala. The Company has issued a secured non–convertible debentures also known as "Muthoot Gold Bonds" on a private placement basis. It proceeds from the issuance of Muthoot Gold Bonds form a significant source of funds for their Gold Loan business. It also relied on bank loans and subordinated debt instruments as its sources of funds. As of March 31, 2010, it had INR 2,719.25 crore in an outstanding Muthoot Gold Bonds and INR 2,561.27 crore in the other types of borrowings. The Company has also raised capital by selling a portion of its loan receivables under bilateral assignment agreements with different banks that purchase their portfolio primarily for meeting their various priority sector lending commitments. Also, the Company's customers are typically small businessmen, or the vendors, or traders, or farmers and can be salaried individuals, who for reasons of convenience, either have accessibility or necessity to avail or get benefitted by its credit facilities by pledging their gold jewelry with it rather than by taking loans from banks and some other financial institutions. It provides the retail loan products, primarily comprising of the Gold Loans. The Company also disburses other loans which include those secured by the Muthoot Gold Bonds. As the Company's Gold Loans have a maximum of the 12-month term, and its average disbursed Gold Loan amount outstanding was INR 26,183.0 per loan account as of March 31, 2010. In the year ended as on March 31, 2010, the Company's retail loan portfolio earned, and on an average, 1.67% per month, or 19.94% per annum.

The Milestones:

1. 2007 –

• The Retail loan portfolio of the Company crosses INR 1000 crore.
• The RBI accords status of Systemically Important ND–NBFC.
• The Branch network of the Company crosses 500 branches.
• The Net owned funds of the Company crossed INR 100 crore.

2. 2008 –

• The Retail loan and debenture portfolio crossed INR 2000 crore and INR 1000 crore respectively.
• The Net owned funds of the Company crossed INR 200 crore.
• The F1 rating obtained from Fitch Ratings affirmed with an enhanced short term debt of INR 80 crore.
• An Overall credit limit from lending banks crosses INR 500 crore.
• The Conversion of the Company into a public limited company.
• The Fresh RBI license obtained to function as an NBFC without accepting public deposits, consequent to change in name.

3. 2009 –

• The Retail loan and debenture portfolio crossed INR 3000 crore and INR 1500 crore respectively.
• The Net owned funds of the Company crossed INR 300 crore.
• The Gross annual income crosses INR 500 crore.
• Overall credit limits from lending banks crossed INR 1000 crore.

4. 2010:

• The direct loan and debenture portfolio crossed INR 5000 crore and INR 2000 crore respectively.
• It is Net owned funds of the Company crossed INR 400 crore.
• The overall credit limits from lending banks cross INR 2000 crore.
• The ICRA assigns '''A1+' rating for short term debt of INR 200 crore.
• The CRISIL assigns '''P1+' rating for short term debt of INR 400 crore.
• The Branch network of the Company crosses 1,000 branches.
• The Demerger of the FM radio business into Muthoot Broadcasting Private Limited.
• The Private equity investment of an aggregate of INR 157.55 crore from Matrix Partners India Investments, and LLC & Baring India Private Equity Fund III Limited.
• The Private equity investment of an aggregate of INR 42.58 crore from Kotak India Private Equity Fund and Kotak Investment Advisors Limited.

5. 2013 –

• It obtains RBI License to start operating 9,000 White Label ATMs.