pennews
www.pennews.net
No economic slowdown on gold loans : Muthoot FinCorp
Business

No economic slowdown on gold loans : Muthoot FinCorp

Agency News

Hyderabad, Nov 29: There is no economic slowdown impact on gold loans and we expects 15-17 per cent growth in this fiscal in its Assets Under Management (AUM), said Muthoot Fincorp Limited (MFL), the largest gold loan company, Chief Operation Officer Vasudevan Ramaswami here on Thursday.

Addressing at a press conference here, Vasudevan said the company recorded a healthy growth of 16 per cent last year in terms of AUM against 13-14 percent of industry growth and till September, 2019, pegged at about Rs 12,300 crore against about Rs 11,000 crore in the previous year.

We disbursed nearly Rs 27,000 crore last year with over 90 per cent toward gold loans, he informed and said the average ticket size of gold loan is Rs 35,000 while MSMEloan amount varies from Rs 15,000 to 3 lakhs and can go up to Rs 5 lakhs.The company also provides Equated daily instalments (EDIs) to its MSME loan customers to help them pay on a daily basis, he said that our gold loan interest which is more than against banks, would be between 12-21 per cent.

Currently, we have 3,600 branches across the country with seventy percent in Southern markets, Vasudevan said it has 265 branches in Telangana and 371 branches in Andhra Pradesh and is now planning to open 60 more new branches in both telugu states in the next 12-months, he informed.

We have been opening 200 branches every year, he said in Telangana and Andhra Pradesh, the company has registered AUM growth of 18.6 per cent in the current year as compared to last year.

In September this year, the company issued non-convertible debentures (NCDs) to raise Rs 500 crore (including Rs 250 crore greenshoe option) and the funds raised will primarily be used to elevate the working capital and enhancing lending, he also informed.

The company has around 1.9 million customers nationally including 1.65 lakh in Andhra Pradesh, he added. (UNI)