Muthoot Finance celebrates a remarkable decade of its Sri Lankan subsidiary, Asia Asset Finance, transforming it into a powerhouse of financial growth and stability with innovative strategies and unparalleled customer service.
Kochi: Muthoot Finance has successfully completed a decade of profitable operations with its Sri Lankan subsidiary, Asia Asset Finance PLC (AAF), following its acquisition in 2014. Managing Director George Alexander Muthoot announced the milestone during a press conference, highlighting the company’s achievements in driving financial inclusion and growth in Sri Lanka.
Handling loan assets worth ₹5705 crore, Muthoot Finance holds a 72.92% stake in AAF. Listed on the Sri Lankan Stock Exchange, AAF operates through over 100 branches across the country. In the fiscal year 2024, the company recorded its highest-ever net profit of ₹95.61 million (344.2 LKR), underlining its robust financial performance. Additionally, Fitch Ratings upgraded AAF to an A+ stable outlook in March 2024, strengthening its market position.
AAF’s gold loan portfolio grew fourfold between 2019 and 2023, raising its market share from 4% to 18%. This growth was driven by increasing demand for short-term loans, easy access to credit, and a simplified repayment process. Apart from gold loans, AAF offers business loans, micro-mortgage loans, and vehicle loans, serving over 2.3 million customers across Sri Lanka.
Despite economic challenges, AAF has emerged as a key driver of Sri Lanka’s financial growth, showcasing the strength and scalability of Muthoot Finance’s business model. “This milestone reinforces our ability to deliver value and ethical financial solutions across diverse markets,” said George Alexander Muthoot. AAF’s success aligns with Muthoot Finance’s global growth strategies and continues its legacy of trust and empowerment, contributing significantly to the financial sector.
