Kochi-based mid-sized gold loan player Muthoottu Mini Financiers is looking to grow its loan sales by over 45 percent in this fiscal as it embarks on a faster expansion and also increasing per branch productivity as the economy returns to near normalcy from the Covid-19 pandemic.
Job losses due to the first three waves of the pandemic and the subsequent pick-up in economic activities have been driving demand for gold loans from individuals for personal requirements and small businesses for working capital, coupled with a massive spike in the bullion prices since the pandemic hit the world in March 2020.
Muthoottu Mini, hailing from the Muthoot group, closed FY22 with over 25 percent growth and an AUM of Rs 2,500 crore, which grew from Rs 1,994 crore in the previous fiscal. The larger group entity Muthoot Finance is a listed company with over Rs 65,000 crore of AUM, up 11 per cent from FY21, while the other one Muthoot Fincorp is the third-largest player with around Rs 10,000 crore of live loans and the No 2 Manappuram Finance grew 11 per cent in FY22 to Rs 30,300 crore.
"Muthoottu Mini had an average loan growth rate of 22 per cent in the three years to FY21, and 25 per cent in FY22 and hopes to add 45 per cent more new customers this fiscal. This industry normally counts only fresh loans as loan sales and not pledge renewal." Muthoottu Mini Managing Director Mathew Muthoottu told
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