Muthoot Finance Limited (NSE: MUTHOOTFIN) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
George Alexander Boto — Managing Director
Oommen Mammen — CFO
Analysts:
Sanket Chheda — Analyst
Maruk Adajania — Analyst
Sri Pal Doshi — Analyst
Byron — Analyst
Vasudha Khurana — Analyst
Sanjay — Analyst
Shanskar — Analyst
Sripal Doshi — Analyst
Vedant Sarda — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Mudhut Finance Q3FY26 earnings conference call hosted by DAM Capital Advisors 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanket Chera from Dam Capital Advisors Ltd. Thank you. And over to you.
Sanket Chheda — Analyst
Yeah. Hi. Very good evening to all of you. We have with us the entire management team of Motoot Finance today to discuss their Q3 results. From management side we have Mr. George Alexander Mussoor who is a managing director. Mr. Alexander George who is a whole time director. Mr. George M. Alexander who is a whole time director. Mister George M. George, full time director, George M. Jacob, full time director and Mr. Alexander who is an executive director. And lastly Mr. Omen Marmen who is the CFO of the company. Without further ado, I’ll hand the call over to Samdisa for their opening remarks and we’ll follow that up with question and answers.
Over to you sir.
George Alexander Boto — Managing Director
Thank you. Good evening to all. This is George Alexander Muthu, Managing Director. Along with me I have the cfo, the COO and some of the other directors. Also because today we just finished the board meeting. That is why we have the luxury of having some of the other board members also present here. So we just had the board meeting. It was from our side. We feel that it was a good year for Gold loan business. Our standalone AUM has achieved a historic growth of 50,000 crores which is fueled by the robust 50% year on growth in the Gold loan portfolio.
Our core Gold loan portfolio has grown by 50%. But over the nine month period the standalone gold loan increased by 36,700 crores setting a new record for gold loan of 1,39,658 crores. This performance aligns with the accelerated demand for Gold loan especially evident during the festive season. Consequently, our standalone profit after tax for the ninth month grew 91% to 7,048 crores. We see customers increasingly acceptance of customers for the gold alone as a convenient, trusted and secure credit solution for a diverse customer base. See, the customer base is very diverse including salaried individuals, self employed professionals, small business owners.
And also the higher price of gold has further empowered our customers to unlock greater value for their existing assets. So this has been the good performance from Muthut Finance for this year and overall not only the gold loan business, the other business, other AUM has also definitely grown. The standalone research is what I said about Muthuj Finance and the Muthut home loan portfolio or the home loan business subsidiary. It’s a 100% subsidiary. The AUM stands at 3380 crores in the nine months which shows a 24% growth year on year and the total revenue stood at 339 crores registering a growth of 38% and the profit after tax stood at 19 crores in nine months.
The stage three loan assets stood at 2.32 as of December 25. Melstar Microfinance registered Microfinance as a subsidiary of Muthoot Finance where Muthoot Finance holds 66.13% stake. The loan AUM for the nine months stood at 7911 crores. The total revenue stood at 1312 crores for the nine months. The microfinance IT achieved a significant turnaround in Q3 posting a profit after tax of 51 crores particularly offsetting the loss incurred in H1 of 160 crores. So the cumulative loss for the year has stance reduced to the stage 3 loan asset stood at 4.93% which has a provision coverage of 96.59%.
The higher stage 3 is also consistent with the industry peers consequent to RBA allowing microfinance companies to have 40% non microfinance portfolio. Bellstar has opened 39 gold loan branches in the nine months to diversify the loan product portfolio. Utut Insurance Brokers, a registered insurance broker has also done well. It has achieved a profit after tax of 23 crores in the nine months. Asia Asset Finance, the distressed subsidiary based in Sri Lanka where Muthut Finance hold 72.9% stake portfolio stood that Sri Lankan 4,224 crores which would be approximately about 950 to 960 crores of Indian rupees and the total revenue stood at 703 crores as against 494 in the previous year increase of 42%.
It achieved a profit after tax of Sri Lankan 68 crores in the nine months ended financially 26/ against profit of 50 crores in the last year. Muthut Money became a wholly owned subsidiary of Muthut Finance in 10-28-2018. Muthoot Money is a RBI registered non banking finance company engaged in extending vehicle finance and gold loans. The loan portfolio for nine months stood at 8,003 crores as against 2,982 crores in the previous year showing an increase of 168%. During the nine months the loan AUM increased by 4,001 crores showing an increase of 105%. Total revenue of the nine months increased to 862 crores as against 268 crores in the previous nine months and it achieved a profit after tax of 203 crores in the nine months compared to a loss of 2 crores in the corresponding previous nine months.
So overall we see good growth, good momentum for gold loan business. The gold loan business per se as well as the other small businesses other businesses are also doing well. But potentially today it is a time for the gold loan business. The gold loan business is going very well and Muthut Finance with its almost 5000 branches in Muthoot Finance as well as about 1000 branches in Muthoot Money is well poised to take advantage of the opportunities in the gold loan sector and with the blessings of the business, the regulators and the customers we have been able to do well.
Branch okay. Recently, last week Reserve bank of India has sent out a circular or rather a draft regulations for comments where our long standing request or the request for permitting barrage opening without prior permission from the Reserve bank stands withdrawn. So hopefully these draft regulations will be made into proper regulations and the impact to Muthut Finance and also to Muthut Money which has about 1,000 branches today would be that they would be able to open branches wherever we require and that is certainly a very positive attitude which is being shown by the Reserve bank of India.
Of course we feel that this will also help in growing the gold loan business all over India and as well as we feel that this is one way or the best way for the government to put purchasing power in the hands of people and monetize the idle gold lying in the hands of people. So by permitting Muthut Finance also to open branches I think it is a very positive step for positive action for Muthut Finance and I’m sure we should be able to take advantage of that also. So with that the positive sides of the government and regulator looking at we see good prospects going forward also.
So with that I would like to end the initial remarks and throw open the floor for clarifications and questions from the investors. Thank you.
operator
Thank you very much. We will 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 queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Maruk Adajania from Navama. Please go ahead.
Maruk Adajania — Analyst
Hello. Good evening. Congratulations. So my first question is that our yields have been continuously rising, right, for the last four quarters. And so is it that the new customers who are coming in or the new loans that are being sanctioned are being sanctioned at higher rates? And if you could call out separately the interest on the recovery interest in the quarter like last time you had said it was around 300 crore. So what was it this quarter? That’s my first question.
George Alexander Boto — Managing Director
Okay, so I think thank you for the appreciation. Yes, we have been growing in the last four quarters. The loan to value has been fixed by the regulator at 75%. Not that everybody takes the whole 75% of the of the permitted loans today. If you look at today’s price, at today’s price the loan’s outstanding is only 57%. 57% of the total book is what is outstanding. So whatever is the permitted LTV? No, we do not do anything more than the 75%. But average LTV today on the outstanding portfolio at today’s price is only 57%. About the interest.
Yes. There have been churn in the NPA portfolio where the NPA of old NPA, the legacy NPA of about 950 crores has been closed by the customers. And the new NPA which has fallen is about 342 crores. So the net NPA reduction is about 556 crores. The interest which we earned on the legacy NPA minus the interest on the derecognized NPA, it comes to about 500 crores which is the old NPA we have received. And also we had some auctions during the quarter and we realized about 120 crores through auctions. Also ARC also contributed to about 24 crores of interest.
So that is why there is a bump in the interest.
Maruk Adajania — Analyst
Okay, so around 624 crore. Like 500 from recovery and then 24 from arc and 100 more like that, right?
George Alexander Boto — Managing Director
Yeah, 120 from.
Maruk Adajania — Analyst
Yeah, probably some interest rates here and there. We have done so that also there’s.
George Alexander Boto — Managing Director
Some interest rates tweaking also sometimes happens. Yeah.
Maruk Adajania — Analyst
Okay. Okay, got it. Okay. And so your new customers or your existing customers who’ve taken fresh loans with new collateral has grown. But your new customers haven’t grown. Right. This quarter as in last quarter it was around 0.42 million and now it’s around 0.4. So it’ll stay stabilize at this level. Is it? Or new branch openings will help improve the new customers coming in. How do we it in the next few quarters?
Oommen Mammen — CFO
So we have 4 lakh 400,000 customers, new customers coming.
George Alexander Boto — Managing Director
You know, probably it is not that it is stabilized there. It is seasonal also. Sometimes more people come. If as you said no branches meet some more new customers. But there is a steady flow of new customers.
Maruk Adajania — Analyst
Who can say how much was the auction during the quarter?
Oommen Mammen — CFO
That’s what I said. Auction interest is about 120 crores.
Maruk Adajania — Analyst
Okay. Okay sir. Thank you.
operator
Thank you. Our next question comes from the line of Sri Pal Doshi from Equirers Capital. Please go ahead.
Sri Pal Doshi — Analyst
Congress on a good set of numbers. My question was on interest income front. So incrementally do we expect some more such one offs coming in from the net recoveries from ndp? Because it’s been going on for the last at least let’s say 3/4 now. So incrementally like how do you see this trend emerging?
Oommen Mammen — CFO
So when we know when there is a increase in the npl certainly there is an interest derivative recognition happens. And those loans remain for some time in our books interest accrues and when it is collected the entire amount is getting recognized. So that is a regular process. Because there is a significant decrease in the old NP accounts there is a germ. This is not regular affair. But whenever it happens there will be an additional income resolution which happens.
Sri Pal Doshi — Analyst
Right? Right. Okay. So I mean the such clarity will not emerge for. For how. For how things can evolve in future.
Oommen Mammen — CFO
Yeah. So I know as I said when around 900 crores of NPAs got recovered, you know another 300 crores fresh NPS got booked in.
Sri Pal Doshi — Analyst
In that market. Yeah. So.
Oommen Mammen — CFO
So that loan account, if it remains for some time later on when it is recovered it gets recognized as interest income. So that’s why this happens. It is a regular phenomenon. But it all depends on how long this accounts remain in the NPA bucket. Especially when there is a decrease in the net NPF figure bound to happen.
Sri Pal Doshi — Analyst
Got it. And so second question was on the pricing front. So incrementally last. Let’s last one quarter. While we have seen such cycles in the past as well wherein the competition has increased when the gold prices have been volatile. But have we tweaked our pricing strategy in the Last let’s say two, three months time period.
George Alexander Boto — Managing Director
There is nothing like a pricing strategy. We try to maintain our net interest margins. So if the cost of funding is low, our yield also would be lower. But we try to maintain our net interest margins and spread.
Sri Pal Doshi — Analyst
Got it. But so we would have passed on at least the cost of fund benefit because even during the quarter the cost of fund has actually gone up.
George Alexander Boto — Managing Director
So what explains that if the borrowing cost, if it is goes up? It is the. It’s the function of we the banks or lenders, we’re increasing their rates. So we just pass out some of that to the customers.
Sri Pal Doshi — Analyst
As in, I mean the rate environment is declining. So why has our cost of fund.
Oommen Mammen — CFO
So in case of banks, I know we are not seeing much of a decrease in their mcl especially whereas in the bonds we have seen a decrease and especially this last couple of months there has been interest rates have been volatile, it has been going up and down. So that creates a paused environment in terms of interest fund. And especially it is because the banks have not significantly reduced their MCLRs.
Sri Pal Doshi — Analyst
Susan, we’ve not seen any great benefit coming in in our cost of fund as such from the bank borrowing that we have.
George Alexander Boto — Managing Director
It will take some time. 1/4, 2/4, probably after some time the MCLR will come down. Today they have not really reduced the MCLR.
Oommen Mammen — CFO
It is not like no 50 basis. No, I don’t think we have seen a 50 basis points reduction in the MCL banks. Most of the banks.
Sri Pal Doshi — Analyst
Okay, okay. And since the last question was on the branch expansion, since the RBA has changed that policy, how do you so now from our end, how do we see the strategy changing? Because we were adding, we were doing business from our subsidiaries as well on the gold finance side. Now incrementally, would we sort of, you know, focus on standalone entity itself or would we continue with the strategy of, you know, doing gold from all of our subsidiaries as well?
George Alexander Boto — Managing Director
No, no. It is only money which is doing the gold loan business. So probably they will also be doing murtut finance usually ask for permission. Today the benefit we see from this is that we don’t need to go and ask permission. We can open the branch and probably inform them that the branch is open. That’s a big convenience factor. Not that just because it is open, we are going to open 10,000 branches. No, nothing like that. We have to open branches calibrated growth that we will continue. The advantage is the two things. One, we don’t need to go after Reserve bank for a permission.
The most Important thing is the comfort or the, the message which we see from the regulator is that they are supportive of the gold loan business. That is the message. That’s the positive we see in this.
Sri Pal Doshi — Analyst
Go on. Thank you so much sir for answering my questions and good luck for the next question.
operator
Thank you. Our next question comes from the line of Byron, engineer from clsa. Please go ahead.
Byron — Analyst
Yeah. Hi team. Many congratulations on the quarter just before my questions. Want to go back to the previous participants question on branch opening. So we take it that branch openings will be business as usual. It will not be accelerated next year.
George Alexander Boto — Managing Director
Yeah, it can be accelerated if we need to, but it again depend on the business environment and whether we need to open projects. Not that as I said, not going to open 1000, 2000 branches tomorrow. It’s not that easy to open.
Byron — Analyst
Okay, understood that that is clear. So secondly, just wanted to understand the OPEX growth trajectory because while I understand AUM growth has picked up our OPEX growth, you know, if I two years back it was 13, 14%. Last year it was 20. Now we are running a 25% growth. Now, given that most of our costs are fixed costs, why are OPEX growing so fast?
George Alexander Boto — Managing Director
I don’t know. I don’t, I don’t know the exact number of growth, etc. Salaries are going up, rents are going up, all costs are going up, Inflation is there. So we are not, we are not insulated from all these things.
Byron — Analyst
So yes, but like 10 12%, right? Not 25%.
George Alexander Boto — Managing Director
I don’t know this number. I’ll have to check that number first. To me, opex. So if it is a 25%, how.
Byron — Analyst
Should we think about it? If your gold loan growth next year is 15% which is your steady state guidance, how much, how should we think about OPEX growth in such an environment?
George Alexander Boto — Managing Director
I didn’t get this number properly.
Oommen Mammen — CFO
Yeah, we can always discuss this. But if you look at employee expenses there is a regular increase which happens and especially when there is a larger business growth. Certainly the variable part keeps on growing. So probably that is one aspect rent. Also there is a. Generally there is an increase every year and one item where we spent more is on the advertisements as being a large volume business. Our advertisement has been keep on increasing and of course we take some outside help in terms of consultants, etc. So that also plays an another reason why there is a increase in opex.
So primarily it is because of the employee benefits and the advertisements and of course the business promotion expenses.
Byron — Analyst
Okay, okay.
Byron — Analyst
And Uman sir, just a couple of More number questions for you. So now cost of funds we should not expect further reduction. It has stable.
Oommen Mammen — CFO
That is not the impression I wanted to give. It all depends on how the rate environment moves in the country. You know one side the RBA has been keep on reducing the benchmark rates. Whereas the banks have not been able to pass on that.
George Alexander Boto — Managing Director
Banks are not passing on freely the mclu. So they are giving lesser loans to maybe home loans and other individuals. But when it comes to borrowers like us they are not really passing on that benefit. That’s a sum and substance of it.
Oommen Mammen — CFO
Probably already there in the public how far banks have reduced their MCLRs in spite of the reduction. So that is one reason why we are not seeing. Because almost 50% plus of the funding comes from the bank. So naturally.
Byron — Analyst
No, sir, I think maybe I didn’t explain my question. But MCLR also happens with a lag, right? Like six month, one year. So if a bank cut their mclr, let’s say in October last year it might come up. If it was six months due, it will come up in April this year. Like that. So we will get that benefit only in April. So my question was that way we still see some for the downside in cost of fund.
Oommen Mammen — CFO
So that is true. You look at how far that reduction has happened in terms of all the banks. Has any bank reduced by 50 basis point? I don’t think so.
Byron — Analyst
Understood. Okay. Okay. And so lastly just 500 crores of interest recovery on 900 crores of NPA recovery. So that is more than 50%. Which means these NPAs were on the books as NPs for more than two years.
George Alexander Boto — Managing Director
We do lot of time to the customer. Sir, when the customers request we give them time. That is one of the reasons we get more business. Also we don’t just aggressively auction the gold.
Oommen Mammen — CFO
See, March 25th our NPA was 3700 crores. Right now it is 2300 crores. So that much of NPA was there, you know at the beginning of the year. So no, definitely nine months has accrued this year and probably another accruals also. Now we have received.
Byron — Analyst
Understood? Understood. Yeah. Okay. So that. That was. Sure. All the best.
operator
Thank you. Our next question comes from the line of Prithviraj Patil from Investec. Please go ahead.
Byron — Analyst
Yeah. Hi. Thanks for the opportunity. So the first question was on the yield. I just wanted to know why the yields have increased. Why? What was the recovery number this quarter? And the second question was on the competition. So we’ve seen some tonnage decrease. QoQ and the active customers have also reduced. So I just wanted to know how the competition is panning out. Thanks.
George Alexander Boto — Managing Director
Okay. Competition is there from everybody. Banks have big competition. Banks have a very big portfolio. Banks have about 13 lakh crores of portfolio. NBFC has about 3 lakh crores of portfolio. So everybody’s portfolio is increasing. Competition is increasing. We are also growing. We grew by 50%. I think that is decent enough.
Oommen Mammen — CFO
Yeah, Pradeep.
Byron — Analyst
Yeah, sorry. And the second question was in the recovery.
Oommen Mammen — CFO
We just explained it. But there has been a recovery of the old NP accounts which has translated an additional interest of around 667 crores. And there’s a fresh NP of around 110 crores. Then there is an option income of around 100 crores. Then there is a recovery from the ARP sale of around 25 crores. So all these have added on top of the regular interest collections and a little bit of interest increase also on the regular loans also has happened. So that is the reason why there is a jump in the yield. Otherwise I think you should see around 18 and a half to 19% as the regular yield.
Byron — Analyst
Yes sir. Thank you.
operator
Thank you. Our next question comes from the line of Vasudha Khurana from Aviva Life Insurance. Please go ahead.
Vasudha Khurana — Analyst
Hi, good afternoon everybody. Thank you for the opportunity. So my question is that gold has. Seen a bull run in the past few months and now it is sort of stabilizing. How do you see that impacting the. AUM growth going forward? Is there any guidance on that?
George Alexander Boto — Managing Director
Our Aum growth is not based on the price of gold. AUM growth is based on the demand for gold. So as I was saying in the beginning itself, our AUM or the loan to value today at today’s price is only 57%. That means although we can lend up to 75, people have not borrowed 75. So it’s only 57% is the today’s total value. So that also shows that just because the price is increasing people don’t take money. But it also is a factor because when price increases people generally feel that their collateral, the gold wisdom is quite valuable.
And probably some of them may think of monetizing it by taking a gold alone, etc. So price increase is there. But of course price is volatile. It has gone up very high in the last one year and sometimes we feel that it is stabilizing then probably it may not stabilize. So we will wait and see. But having said that, it is not just the price rise, it is the demand. We Feel that the demand is coming because unsecured loans, etc. Are not easy to get. And even the microfinance sector has degrowed. People need money and they are increasingly starting to use gold collateral to get money.
I think that is the reason for this.
Vasudha Khurana — Analyst
So what I actually meant was that. The tonnage that, you know, finance holds. And you know, that being part of assets. So, so you know, how would that get impacted with.
George Alexander Boto — Managing Director
Okay, I think I’ll answer this question by saying that the, the, the gold loan remains only for about three to four months. So three months back, somebody has to pledge four bangles to get one lakh rupees. Today he has to bring only three bangles. So I cannot ask him to bring all the four bangles which he gave three months back. So we have to do with this three months, three bangles only. So definitely for the same or the similar loan amount, he needs to provide only new loans. They need to provide only lesser quantity. So when the old four bangles get released and the same loan gets priced at three bangles, the weight actually has to come down.
So it is a factor of the function of the gold price. Also the gold price goes up very high. The tonnage has to come down.
Oommen Mammen — CFO
See, every day we are doing fresh loans of around 50 to 60,000 numbers. A similar number also comes back as repayments. No. So there is a regular churn which happens. So the cycle is short. So. Yeah, so we cannot expect the new customers to bring the same four bangles.
Vasudha Khurana — Analyst
Right? Right. Right. Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask questions, you may press Star and one at this time. Our next question comes from the line of Sanjay from Acme Private Limited. Please go ahead.
Sanjay — Analyst
Sir. Compliments to you for delivering excellent results. Sir, I have a few questions. Are we revisiting guidance as you indicated in one of the media interviews sometime back, I think last month. So you indicated that probably you will revisit the guidance when you hold a Q3 con call or something. So that is one question. Secondly, sir, we are emerging as one of the top 50 most profitable companies in India with a 10,000 crore profit annually will be in the top 50. So we request, we request you to hold quarterly board meetings earlier. Like Reliance TCs, they will normally in the first month itself rather than holding the second of the, you know, season when it ends.
So I request you, it’s a third question is we request you to request you to appoint a big four auditor because that will help in, you know, creating more wealth for the investors, you know, because it gives a lot of foreigners. They want Big four investor. Big four auditor. As a auditor. Not that we do not like the current audience. They are also very good. Last question is what? What are we doing to reward investors? Bonus issue, increasing payout, stock split. You know, because you know our 3% is equity held by only retail investor. 73% by the promoters and 23% by institutions.
So only 3% is held by investors. Retail investor. So kind. I think it’s another way to reward investor by splitting the stock or by increasing the value of number of sales. You know, by increasing the number of quantity of sales. By splitting the stocks. We request the stock split also. So I. You know, these are the questions. So board meetings. I think we’ll have to request the board members to come early. I think some of them are. You’re finished. Can I reply?
George Alexander Boto — Managing Director
Yeah, yeah. Please. Please go ahead. So board meetings. We will request them next time to start to do it earlier also. Okay, okay. Splitting shares and border shares etc is something again. Which we will. We will. Since you said we will take it up with the next meeting and ask the board their opinion on that. Next question is about the guidance. You said we have already grown by 36%. So you said we have to give a guidance. I thought I will give it to. I will give the guidance tomorrow at the.
Sanjay — Analyst
Okay, okay. But sir, you can give it to investors also here.
Oommen Mammen — CFO
So. No, first of all let me say tell you. No, we are not given a guidance of 10,000 crores. That is the number which you have quoted. So. No, no, no. 10,000 crore profit will occur. Now I’m not saying you give the guidance. No, sir, our MD came on the CNBC to give a no. And they were asked a question that you know. So our MD said that we’ll probably revisit the loan growth guidance. You know, loan growth guidance when we hold our next board meeting for the quarterly results. That is my question. My question is not on the profit guidance. I’m not saying profit guidance, profit that BNRS will, you know, on the base of the quarterly results. We will do our analysis.
Sanjay — Analyst
Right. So I’m just asking a pure question. Home. I mean loan gold loan guidance. Yeah, yeah.
Oommen Mammen — CFO
No, we were just clarifying. We are not in the. No, we don’t give a guidance on the profit. Just to clarify for everybody’s interest.
Sanjay — Analyst
No, no, sir, we are not asking the question on the profit guidance.
George Alexander Boto — Managing Director
Not for a woman. You’re saying for everybody, all the listeners.
Sanjay — Analyst
Okay, okay, sir. Okay. Okay.
George Alexander Boto — Managing Director
Sure. Okay. I think we have. We have grown by 36. We should grow a little more. I will. I will be able to do some number tomorrow, sir.
Sanjay — Analyst
Okay. Okay. No problem. Thank you very much.
operator
Thank you. Our next question comes from the line of Shanskar from Iraya Capital. Please go ahead.
Shanskar — Analyst
Hello. Yeah, so just follow up on the question of a previous participant. So given the gold price volatility that we are seeing recently. So how should we think about both AUM as well as earnings and margin growth in a scenario like let’s say gold prices decline significantly given the high volatility. Just overall outlook I want you to understand.
George Alexander Boto — Managing Director
I think it’s a hypothetical question whether what will happen. But from our experience again I’m repeating gold price is not the factor for gold loan growth. Gold loan growth depends on the requirement of the customer. Gold is there with everybody and people come with the gold if they need money. So if the people feel that gold loan is easier, better than other types of loans, we will get loans. So today the environment is good for a collateralized loan because unsecured loans etc are difficult. Unsecured personal loans, unsecured business loans and maybe even unsec micro finance loans are difficult.
That is why we see a big good demand for gold loan growth. So but probably there will be some people who may think that the price is falling. The gold loan business may not grow. But I don’t agree to that. I don’t agree to that.
Byron — Analyst
Understood. Got it. Thank you.
operator
Thank you. Our next question comes from the line of Jacob T. From Jacob and Associates. Please go ahead.
Shanskar — Analyst
Yeah. Good evening everyone. Congratulations to Mr. George Muthoot and the entire management team for coming out with fantastic results. I just wanted to ask a question especially regarding the growth this year. But Mr. George has already told that you want to give it out in a TV interview tomorrow.
Oommen Mammen — CFO
So.
Shanskar — Analyst
Okay. But at least subsequent to the December months, that is in the January months are we seeing similar kind of growth?
George Alexander Boto — Managing Director
Yeah, I think we are not supposed to answer that directly. But anyway business is as. As good as earlier.
Shanskar — Analyst
Okay. All right. I have another question that’s we recently we have seen very volatile prices for gold gold bullion. So what kind of safeguards do we have in our system? Because if there is a fall of 15,020% do we have some safeguards?
George Alexander Boto — Managing Director
Yeah, I think I answered that question little earlier. Also today our average loan to value is only 57% or lesser than 57%. So we have such a big margin that that is one side of the price. But again most importantly we give finance Only gold ornaments on which there is a making charge which is again a 15, 20%. So the replacement cost for a customer is not 100, it is 115 or 120. So we have sufficient margin. Finally, because it is an ornament, it has a sentimental value also. So just because the price falls, people just don’t abandon the gold.
So we have seen this happen in the last several years. There have been fluctuations in the price. Just because price has fallen or price has fluctuated, nobody abandons the gold. So in the last 10 years, 15 years after listing also we have never had such instances. So I think we are definitely insulated from that.
Shanskar — Analyst
Okay sir, thank you. Thank you very much for your answers. Thank you.
operator
Thank you. Our next question is a follow up from Sripal Doshi from Aquiris. Go ahead.
Sripal Doshi — Analyst
Hi sir. Thank you for giving me the opportunity. Once again my first question was on what is the accrued interest rating? Right now.
Oommen Mammen — CFO
It will be around 800 crores plus.
Sripal Doshi — Analyst
Got it, got it. And sir, with respect to the incremental disbursements, what is the LTV that we are sort of seeing in the last, let’s say couple of months or let’s say last quarter, what is the incremental LTV that we are able to do for the fresh disbursements?
Oommen Mammen — CFO
See, we are allowed to give 75 percentage. And sometimes because of the gold price we may not entirely give that than 75 percentage. So whatever is the limit which we have fixed. You know, some customers take the full amount, some customers take the lower amount depending upon the scheme he chooses.
Sripal Doshi — Analyst
So okay, but like at an average level, what would it be like? Because since you will be looking at it from the macro point of view. So from that point of view, have you seen disbursement?
Oommen Mammen — CFO
So generally on a stable gold price scenario, I’m not talking about last one or two quarters, you know, the normal disbursement ltv. You know we in the past we have seen it though we give 75 percentage average tends to be around 71, 72 percentage.
Sripal Doshi — Analyst
In last quarter it would have been.
Oommen Mammen — CFO
Like so last quarter I’ll not be able to come in because. No, we have restricted. Though we were eligible to give 10%, we have restricted because of the volatility in the bull.
Sripal Doshi — Analyst
So it would have been lower than at least the broader average. Okay, okay. Sorry.
Oommen Mammen — CFO
Yeah, that is also one of the reasons why the tonnage tends to come down. No, because when you give it a higher price, the gold people tend will be lower.
Sripal Doshi — Analyst
Right, right, right. And the last question was on the growth front. So while sir highlighted that the growth has come in from the credit demand which has increased at the customer level and not purely linked to the gold price rally. So just wanted to understand that you know this reason could have also been a function of MFI segments seeing dry out of business momentum or let’s say disbursements were shrinking there as well. However with that segment bouncing back, do you see that can impact our sort of lenders who are into gold finance Incrementalist, that vertical is now available at the customer’s level.
Oommen Mammen — CFO
So what I said is micro finance is one factor. The overall unsecured lending is also very difficult today. Not that people are not getting it very difficult. Especially to non salaried people. Unsecured loans and also the business loans are also very difficult. That is why you would have seen yesterday’s newspaper which says that RBI said for business loans you can even take gold as a collateral. That goes to show that people are not getting unsecured business loans also easily. So third factor is microfinance user bounced back. I haven’t seen any big bounce till now. Some small growth only.
I have seen nothing big bounces come. That is my feeling.
Sripal Doshi — Analyst
So if it comes that can. That can have some rub off effect on our.
Oommen Mammen — CFO
If you look at our growth in the last one decade, it’s a period when microfinance sector has also boomed. In spite of that we have grown. So probably you can exploit. Extrapolate, extrapolate from that.
Sripal Doshi — Analyst
And this is the last question was on the. You know customers are taking agripsl loans from PSU bank. So have you seen any increase, let’s say from in that from customers moving away from us and taking the agripsl loans from PSU bank. Have we seen such leakages happening from our end?
Oommen Mammen — CFO
Sir, it’s not some leakage because we are also growing. You saw we grow by 36% in the last nine months. So our business is also growing. In the last one year we grew by 50%. So business is growing. And people don’t tell us that they’re going to take a gold from us and take an agricultural gold loan from a PSU bank. They don’t confide that to us. Anyway all these things happen. Such a big market today the banks with all the agriculture and non agriculture loans hold about 13 lakh crores of portfolio. It’s a huge number.
Micro. Micro NBFCS Gold loan NBFCS hold only about 3 lakh crore. So they are still big there. And people Continue to take gold loans, they will continue to take agri loans from the. Especially from the PSU banks. So it’s always there.
Sripal Doshi — Analyst
Right?
Oommen Mammen — CFO
Everybody is growing, they are growing, we are growing.
Sripal Doshi — Analyst
Right. So that question was coming like I was coming from let’s say the pricing point of view as well because there the pricing is much lower at 8, 9% sorry 8 to 10% of a range.
Oommen Mammen — CFO
So yeah, so it is nothing new. This has been there for the last 10, 15 years. People banks have been doing agricultural loans, PSN loans, etc it’s always there. People who come to us, come to us for some other reasons also. So they are our customers, they come to us for convenience etc. They will still continue to come.
Sripal Doshi — Analyst
Thank you so much for taking up my questions.
George Alexander Boto — Managing Director
Thank you.
operator
Thank you. Our next question comes from the line of Vedant Sarda from Nirmal Bank Securities Private Ltd. Please go ahead.
Vedant Sarda — Analyst
Am I audible?
Oommen Mammen — CFO
Yes.
Vedant Sarda — Analyst
Congratulations on a great set of numbers sir. What I want to understand is RBI has allowed lending on silver. I think so from 4-1-2026. So how do we look at it and how it can drive a growth?
George Alexander Boto — Managing Director
So you mean to say whether we are planning to give loan against silver? We have not considered it sir. We have not considered it as yet.
Vedant Sarda — Analyst
Okay sir. Okay.
operator
Thank you. Participants who wish to ask questions may press star and one at this time. Ladies and gentlemen, as there are no further questions I would now like to hand the conference over to management for closing comments.
Oommen Mammen — CFO
Thank you. Good evening. From my side it was quite an interesting interactions with the investors and things. We are thankful to the investors for participating in the con call and also guiding us, helping us and also probably getting their doubts etc clarified. Thank you for your support. I think I thank all the others who have participated also and from our side, from Muthut Finance, from the management we will see. We will always ensure that the interest of the investors that investors are all stakeholders with the borrowers, lenders etc. Protected and we will do a good job of growing the company of growing the company both in quality and quantity.
Thank you and good day to all of you.
operator
Thank you on behalf of Dam Capital Advisors Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.