Muthoot to separate MFI biz
Targets Rs 600cr TO in FY14 Mumbai (PTI): Gold loan major, Muthoot Fincorp, the flagship brand of...
Targets Rs 600cr TO in FY14
Mumbai (PTI): Gold loan major, Muthoot Fincorp, the flagship brand of diversified Muthoot Pappachan Group, is mulling to double its micro-lending business to `600 crore in the current fiscal from existing `330 crore. Besides, the Kochi-based company is planning to hive off the micro finance business into a separate company under the NBFC-MFI model once it gets the go-ahead from the RBI, Muthoot Fincorp COO Microfinance (MFI) Business Unit Sadaf Sayeed said.
The group has 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 `600 crore. Last fiscal we closed the books with an asset of `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 `180 crore. When asked about the average ticket size, he said it is `12,000 and the interest it charges in the range of 24 to 26 per cent.A To fund expansion, the company is planning to offer an NCD issue worth `100 crore this fiscal. Once it has the RBI nod, it will also enter MSMEs and SMEs funding activity.