Kolkata: Muthoot Finance has decided to merge its wholly owned subsidiary, Muthoot Money, with itself to boost operating synergies and better utilise its workforce and other resources.Muthoot Finance is the country's largest gold loan company, with Rs 1.80 lakh crore in assets under management. Muthoot Money is also primarily a gold loan lender, with Rs 10,345 crore in AUM.Also Read: Higher funding costs, rising competition may weigh on Muthoot FinanceThe board of Muthoot Finance, an upper-layer non-banking finance company, approved the merger at its meeting on Monday.The amalgamation would consolidate the operations and business and create a larger gold loan business with enhanced operating synergies, improved utilisation of resources, streamlined workflows and greater operational efficiencies, Muthoot said in a regulatory filing with the stock exchanges.The amalgamation would also simplify the management structure and optimise costs through the consolidation of office locations and infrastructure and the integration of systems and processes, it added.The proposal is subject to approvals from the Reserve Bank of India, the National Company Law Tribunal and the company's shareholders.
Muthoot Finance approves Muthoot Money merger to create larger gold loan business
In a move to strengthen its market position, Muthoot Finance plans to incorporate Muthoot Money, its wholly-owned subsidiary, into its operations. This merger is designed to foster operational synergies and improve resource allocation. It is expected to streamline the management structure and optimize operational costs, thereby building a more competitive gold loan venture. The plan is subject to approvals from the Reserve Bank of India and various authorities.
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