New Delhi, April 17 -- Muthoot Finance-controlled Belstar Microfinance Ltd is launching gold loan business to diversify its book and reduce risk in the portfolio. The diversification will create a new income stream, helping the company ahead of its initial public offering (IPO).

"We are looking to diversify the portfolio of microfinance business up to RBI permitted limit of 25% of the total AUM (assets under management)," said George Muthoot, managing director, Muthoot Finance.

The Chennai-based microfinance institution (MFI), with an assets under management of Rs.8,703 crore, had posted a net profit of Rs.24 crore at the end of December 2024, compared to Rs.1,003 crore during the corresponding period a year ago.

As on 31 December, Bel...