In an interview with CNBC-TV18, VP Nandakumar, CMD, Manappuram General Finance & Leasing spoke on the gold loan financing business and the company's disbursement and margin targets going forward.
Below is a verbatim transcript. Also watch the accompanying video. Q: Your disbursement targets for FY11 is almost done. But what about FY12? How much do you think the disbursements targets could go up by? A: In FY11 I hope our asset management will cross Rs 7,500 crore. We expect that to close to Rs 12,000 crore in FY12. Q: Can you just give us a quick update on your margins because there was a bit of pressure in your margins in the past two quarters despite being very high anyway - can you just give us an update on how your NIMs are and what we could expect possibly in FY12? A: The NIMs are 2.5% compared to last year during the same time because of the overall cost increase. That we could somehow absorb for bringing down of our non interest operating expenses. The profit level we have budgeted and targeted we will be able to achieve during FY11 even in spite of the cost increase. Q: The gold loan financing segment is still very under penetrated. I think India holds almost 10% of the gold stock by value in which only 1% or 2% is really out of gold loans how do you see this market growing and as a player yourself what could the market share for your company be in terms of growth? A: Our market share is very low because what we hold is around 45 tonne as collateral whereas the gold in the country is estimated to be around 20,000 tonne. So it is low. But what has come to the market what you said is 10% of that, that is Rs 2,000 crore in the grey market. Out of that we hold just 45 tonne. There are two things. One, this Rs 2000 crore is with our unorganized sector which will gradually come to our organized market. Not only that the other 90% which has not come. But it is a possibility that also will come when more and more players become aggressively because the banks are also there in this but till very recently they were very dominant. Even they have become aggressive. I think the scope is for the market to expand. Q: There was this RBI notification that had come that loan sanction to NBFCs for lending to individuals for not be now under the agricultural sectorDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
