Muthoot Finance Share Price Falls 4% to 9-Month Low: Rising Competition and Credit Costs Weigh on Stock

Muthoot Finance share price came under pressure on June 10, falling nearly 4% and hitting a 9-month low during intraday trade. 

The stock touched a low of ₹2,870.45 on the BSE, its lowest level since September 2025. It has now declined around 31% from its 52-week high of ₹4,149 recorded in January 2026. 

Muthoot Finance Share Price Under Pressure 

Investor sentiment remained weak despite the company reporting strong growth in its gold loan business. 

At around 11:44 AM, Muthoot Finance share price (NSE: MUTHOOTFIN) was trading at ₹2,897.20, down 3.14% for the day. 

Muthoot Finance Share Price Performance Snapshot 

What Is Worrying Investors? 

The company reported a quarter-on-quarter decline in gold loan tonnage and active loan accounts, indicating some slowdown in customer activity. 

At the same time, asset quality weakened after the Reserve Bank of India (RBI) required lenders to move from loan-level classification to borrower-level classification. This resulted in higher provisions and increased credit costs during the quarter. 

Management Remains Optimistic 

The company's management remains confident about long-term growth prospects. 

Chairman George Jacob Muthoot said the company continues to focus on becoming a diversified financial services group while maintaining disciplined growth. 

The management also welcomed the new gold loan guidelines, stating that they could improve transparency, governance and customer confidence in the organised gold loan industry. 

Read More: Best PSU Stocks for June 2026: National Aluminium, Hindustan Copper and Others Based on 1-Year Returns! 

Conclusion 

Muthoot Finance share price fell to a 9-month low as investors reacted to concerns over declining loan accounts, rising competition and asset-quality pressures.  

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