Muthoot Finance News --- The GRS Solution:-
Non-banking financial companies (NBFCs) have been on a tear lately. To know the rationale behind this CNBC-TV18 spoke to George Alexander Muthoot, MD, Muthoot Finance.
The company has entered into new businesses of micro finance and housing loans and both these have been doing well.
The gold loan book to grow by 10-15 percent in the coming year and does not think Rs 20,000 limit for gold loan by RBI would impact growth. the grs solution
The micro finance business is mainly done through wealth star, where Muthoot is 65 percent shareholding, he said. The company has about Rs 500 crore AUMs. It is basically a self-help group company which has converted itself into a micro finance company, said Muthoot.
Talking about housing loans business, he said the corporate office is in Mumbai and loans are largely done in Maharashtra, Gujrarat and Rajasthan. Currently, they have about Rs 600 crore AUMs, which will go up to Rs 1500 crore by FY18 and in the coming year, they aim to take the number to Rs 2500-3000 crore, he said.
He also clarified that as of now they haven’t been approached by anyone for acquisition and would like to keep business to themselves.
With regards to gold auctioning, he said the company has done Rs 700-800 crore of auctioning. While auctioning, they do not end with any capital loss, he confirmed.
When asked how much of losses have they incurred on account of robbery, he said in the recent months there haven’t been any losses but in the last five years, they have suffered losses to the tune of Rs 30 crore.
