Loan News · 3 November 2026 · 3 min read
In short: Muthoot Finance, India’s largest gold loan company, reported a 36% jump in consolidated profit to ₹3,278 crore for July-September 2026. Its gold loan book grew 43% to ₹1,78,956 crore. But its standalone gross non-performing assets (NPAs) rose to 3.87%, from 2.28% in the previous quarter. The company linked the rise to borrowers adjusting to new RBI gold loan rules that need structured repayments.
The key numbers
| Item (Q2 FY27) | Figure | Change |
|---|---|---|
| Consolidated profit | ₹3,278 crore | +36% from ₹2,412 crore |
| Standalone profit | ₹2,977 crore | +27% |
| Consolidated loan book (AUM) | ₹2,09,317 crore | +42% |
| Gold loan book | ₹1,78,956 crore | +43% |
| Gross NPA (standalone) | 3.87% | Up from 2.28% in Q1 |
An NPA is a loan where the borrower has not paid for more than 90 days. Muthoot’s board also approved merging its arm Muthoot Money into the parent company, subject to approvals.
Why bad loans went up
RBI’s new gold loan rules apply from 1 April 2026. Earlier, many borrowers took “bullet” loans, paying interest and principal in one go at the end. Under the new rules, gold loans longer than 12 months need regular monthly payments. Management said some borrowers are struggling to adjust, causing delays. It calls the rise temporary, but that is yet to be seen. Shriram Finance has also reported pressure on its gold loan book.
Gold loans have been growing fast. See our earlier report: gold loans up 83% in RBI data.
What it means for you
- Know your repayment type. Check whether your gold loan is a bullet loan or an EMI loan, and note every due date.
- Missed payments add up. Overdue loans attract penal charges and hurt your credit score. If dues stay unpaid, lenders can auction the pledged gold after giving notice.
- Plan the EMI before you borrow. Use our EMI calculator to see the monthly amount you can afford.
- Compare options such as bank gold loans or a loan against a fixed deposit on our loans page.
Sources
- Free Press Journal: Muthoot Finance Q2 FY27 profit rises 36%
- Whalesbook: Muthoot Finance Q2 profit up; NPA rises on new RBI norms
This is a news summary for education, not investment advice. Figures are as reported on or before 3 November 2026; check official sources before making decisions.