Muthoot FinCorp aims doubling MFI biz to Rs 600 cr in FY14 - Muthoot FinCorp
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Muthoot FinCorp aims doubling MFI biz to Rs 600 cr in FY14


Muthoot FinCorp aims doubling MFI biz to Rs 600 cr in FY14

Mumbai: Gold loan major Muthoot FinCorp, the flagship brand of diversified Muthoot Pappachan Group, is targeting to nearly double its micro-lending business to Rs 600 crore this fiscal from Rs 330 crore in FY2012-13.

The Kochi-based company is also planning to hive off the micro finance business, which is currently managed under its gold loan company, into a separate company under the NBFC-MFI model as soon as it gets the go-ahead from the Reserve Bank, Muthoot FinCorp Chief Operating Officer Microfinance (MFI) Business Unit Sadaf Sayeed said.

The diversified group, which nets its maximum income from the gold loan business, started its MFI business in April, 2010. As part of diversification and to offer more focus to the MFI business, the company had bought city-based Pancharatna Securities in January, 2012.

“If we get the RBI nod and are able to rename Pancharatna, then we are sure to nearly double our business this fiscal to around Rs 600 crore. Last fiscal we closed the books with an asset of Rs 330 crore,” Sayeed said, adding that the company serves around seven lakh women clients across Kerala, Tamil Nadu, Karnataka and Gujarat.

In its home state Kerala, the company has over 2.25 lakh clients with an asset size of Rs 180 crore.

When asked about the average ticket size, he said it is Rs 12,000 and the interest it charges vary from 24 to 26 percent.

To fund expansion, the company is also planning to come out with an NCD issue worth Rs 100 crore this fiscal. Once it has the RBI nod, it will also get into funding MSMEs and SMEs as the company sees big business opportunities there, Sayeed further said.

Its MFI business also includes extending dairy support loans to women under which it extends Rs 25,000-40,000 to women to buy or support dairy farming, he said.

On the asset quality, he said, the net bad loan ratio is only 0.29 percent.

Originally Posted on: Zee News Logo

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