MUMBAI, Sept. 1 -- Gold has always been Muthoot Finance Ltd's crown jewel. But can it also rescue struggling businesses?

Vehicle finance and microfinance arms, once seen as growth drivers, faltered after the pandemic, hit by weak recoveries and high delinquencies. Now, the non-banking financial company (NBFC) is leaning on its gold-loan expertise to steady those units. Over the past month, Muthoot has infused Rs.700 crore into two subsidiaries- Rs.500 crore into Muthoot Money (vehicle loans) and Rs.200 crore into Muthoot Homefin (affordable housing)-as part of a broader strategy to stabilize operations and improve profitability.

"Muthoot Money was doing high-purchase finance. Gradually, that book is running down and today it is doing mo...