Asia Asset Finance marks 10 years under Muthoot Finance

• Emphasises financial inclusion and women empowerment

By Nishel Fernando
Asia Asset Finance PLC celebrated its 10th anniversary under the ownership of Kerala-based Muthoot Finance, the world’s largest gold financing company, reaffirming its commitment to financial inclusion and women empowerment as key drivers for future growth.

The two entities celebrated the 10th year anniversary in Colombo this week in the presence of the senior officials from both Muthoot Finance and Asia Asset Finance.

“We consider Asia Asset part of our group. It’s not just because we hold 73 or 74 percent shares in the company. Muthoot feels we are part of Asia Asset. We came here 10 years ago and we are happy to have turned around this company. We have always supported them and will continue to do so,” said Muthoot Finance Managing Director George Alexander Muthoot.

Asia Asset Finance Director and Chief Executive Officer Rajiv J.A. Gunawardena highlighted the robust growth the company has achieved under Muthoot’s guidance.

“In terms of growth, we implemented a very strong business model through Muthoot Finance’s vision. Our focus remains on financial inclusion and women empowerment and these will continue to be our priority areas moving forward,” Gunawardena stated.

During the first six months of the 2024/2025 fiscal year, Asia Asset’s asset base expanded by nearly 25 percent year-on-year to Rs.32.28 billion, while its loan portfolio recorded an unprecedented growth of Rs.5.5 billion, reaching Rs.26.1 billion. The company successfully maintained its non-performing asset ratio at approximately 15 percent during this period.

“We are confident this trajectory will continue into the future,” Gunawardena added.

The company also expanded its footprint significantly during this (calendar) year, adding 20 branches and bringing its total branch network to 100, with a focus on rural and semi-urban areas. This growth strategy is set to continue next year.

Gunawardena emphasised Asia Asset Finance’s commitment to supporting unbanked and underbanked communities across Sri Lanka.

“Most of the time, these communities are exploited by the unregulated financial sector. We help them become bankable, using our platform to grow and eventually access formal banking and financing services through our financial inclusion programmes,” he explained.

Gold financing and micro mortgage products remain key products in Asia Asset product portfolio in enabling its customers to reach their objectives. Meanwhile, key sectors in the company’s loan book include agriculture and fisheries, which remain a primary focus.

Gunawardena also highlighted the company’s strides in digital transformation, noting that a significant portion of savings activities now occur on digital platforms.