Muthoot Finance, India’s largest gold loan NBFC, today announced that its Sri Lankan subsidiary, Asia Asset Finance PLC (AAF) successfully and profitably completed a decade of operations post its acquisition in 2014, thereby underscoring its position as a global financial services conglomerate through strategic international market expansion.
Marking this landmark occasion, a press conference was held on December 26, 2024 at The Muthoot Group Head Office, Kochi. The conference was addressed by Mr. George Muthoot George, Deputy Managing Director, Muthoot Finance and Mr. V.A. Prasanth, Chairman, Asia Asset Finance PLC. Other dignitaries included Mr. K.R. Bijimon, Executive Director and COO, Muthoot Finance and Mr. Rohith Raj, Head - Corporate Communications, Muthoot Finance.
Muthoot Finance holds 72.92% stake in AAF, which has loan assets under management worth Rs. 5705 million. Listed on the Sri Lankan stock exchange, AAF has a significant presence with more than 100 branches, spread across the length and breadth of the country.
The company achieved the highest profitability in its 54-year history in FY24 with a profit after tax of INR 95.61 million (LKR 344.2 million). AAF received an A+ rating with a stable outlook from Fitch Rating Sri Lanka in March, 2024 on the back of its strong position.
AAF has been one of the most trusted financial services providers in Sri Lanka. With AAF’s continued branch network expansion, increasing operational efficiency, technological innovation and cost savings, Muthoot Finance has demonstrated its ability to successfully replicate its trusted business model to new markets while strengthening its core operations in India.
The strategic importance of Sri Lanka is evident from its growing gold loan market, which witnessed gold-backed loans grew fourfold between FY19 and FY23, increasing its share in the financial sector’s gross loan from 4% to 18%. This surge is driven by the rising demand for short-term financing and the liquid nature of gold collateral, which allows lenders to recover funds efficiently.
Additionally, with nearly 51% of the country’s population unbanked, there is a pressing need to enhance credit access, which aligns well with Muthoot Finance’s commitment to foster financial inclusion. By offering diverse financial products such as business loans, micro mortgage loans, vehicle loan along with gold loans, Muthoot Finance, through AAF, has empowered over 2–3 lakh customers in Sri Lanka to access formal credit systems and build credit histories.
Muthoot Finance’s ability to transform Asia Asset Finance’s operations into a growth engine in Sri Lanka amidst adverse economic conditions also stands as a testament to the strength and scalability of its business model. AAF’s steady growth has strengthened Muthoot Finance’s global and overall expansion plans.
India and Sri Lanka’s recent discussions on expanding trade ties have also renewed confidence among businesses in both the countries. Reflecting on the company’s global vision, Mr. George Alexander Muthoot, Managing Director of Muthoot Finance, said, “Our expansion into the Sri Lankan market was a strategic step in line with our vision to grow beyond India and emerge as a global financial services conglomerate.
The decade-long partnership with Asia Asset Finance, has achieved remarkable milestones, including a 33% year-on-year growth in its loan portfolio, which reached LKR 2,609 crores in H1FY25. In December 2024, the subsidiary also celebrated the opening of its 100th branch, further extending its reach across Sri Lanka.
The success of Asia Asset Finance, even in the face of adverse economic conditions over the last five years, underlines the scalability of our robust business model and its ability to deliver value across geographies. This milestone is not just about growth overseas—it is about building a global legacy of trust and empowerment, by replicating our India success story.”