We have seen a little uptick in the assets under management (AUM) growth, George Alexander Muthoot, MD of Muthoot Finance said.
The Muhtoot Finance stock has been buzzing in trade and gold financiers are in focus on the back of merger and acquisition (M&A) buzz. Also rural market conditions have improved. In an interview to CNBC-TV18, George Alexander Muthoot, MD of Muthoot Finance gave the ground check.
In an interview to CNBC-TV18, George Alexander Muthoot, MD of Muthoot Finance spoke about the latest happenings in his company and sector.
Speaking to CNBC-TV18, George Alexander Muthoot, MD of the company said the demonetisation has started fading with 65-70 percent business coming back on track for the company, Muthoot said adding that Q3 growth is expected to be flat.
The pain of the demonetisation drive seems to be reducing, says George Alexander Muthoot, MD of Muthoot Finance. He expects no de-growth in this quarter and has a growth target of 18-20 percent as things get better.
Speaking to CNBC-TV18, George Alexander Muthoot, MD of Muthoot Finance said that the company is encouraging customers to take up online systems like NEFT and RTGS for payments post demonetisation.
In an interview with CNBC-TV18, Suresh Ganapathy of Macquarie Capital Securities said that unsecured loans and consumer durables are likely to see higher non-performing assets (NPAs) in the NBFC sector.
In addition to Bharat Financial's Non-executive Chairman, Digant Haria of Antique Broking also spoke and he said the size of the company will matter when an NBFC wants to become a bank.
Keyur Shah, CEO-Precious Metals Business at Muthoot Pappachan, said the company has partnered with Kabali producers only to join the 'celebration' and Rajinikanth fans have already booked 100 kg silver coins.
In an interview with CNBC-TV18, George Alexander Muthoot, MD of Muthoot Finance said that the company is looking to expand operations in other geographies.
George Alexander Muthoot, MD, Muthoot Finance says the company continues to enjoy 9 percent spreads and adds that it has not lost any capital on non-performing loans (NPLs).
George Alexander Muthoot, MD, Muthoot Finance says the present scheme of the government is not about deposit of jewelry, it is about converting it to gold bars and not many people will be interested in it as the making charge stands at anywhere between 25 percent and 30 percent.
Speaking about the easing, Muthoot Finance CEO said bullet payment does not tend to affect asset quality of a company.
Shares in leading loan-against-gold lenders such as Muthoot Finance and Manappuram Finance vaulted in early trade Thursday after the Reserve Bank of India (RBI) raised the loan-to-value (LTV) for non-banking financial companies (NBFCs) to 75 percent from 60 percent.
Speaking to CNBC-TV18 on the path ahead, George Alexander Muthoot, managing director, Muthoot Finance, says the white-ATM business segment will help the company gain access to those who are not their customers via gold loans.
In an interview to CNBC-TV18, George Alexander Muthoot, Managing Director at Muthoot Finance speaks about better business prospects going forward. He expects net interest margins (NIMs) to be stale at 9.5 percent, while asset quality will see improvement.
George Alexander of Muthoot Finance told CNBC-TV18 that they had not applied for a banking license yet. He added, that the company will install 9000 White Label ATMs over the next three years.
Following the sharp correction in gold prices, Muthoot Finance, the gold financer is seeing more borrowers abandoning gold jewelleries; however this has not caused much increase in loan loss, Managing Director George Alexander said.
George Alexander Muthoot, MD, Muthoot Finance, says that the company saw a marginal increase in the net profit. He is also of the view that the loan book of the company will improve going forward.
Gold stocks have been doing well today after the KUB Rao Committee said that there is no risk to the financial system because of gold loan NBFCs. George Alexander Muthoot, MD, Muthoot Finance told CNBC-TV18 that the move by the committee is positive.
Oomen K Mammen, CFO, Muthoot Finance, says that the company has received a good response from retail investors but it was not up to the desired level.
Oommen Mammen, chief financial officer of Muthoot Finance says the issue is for Rs 250 crore with an option to retain oversubscription for another Rs 250 crore. "We are planning to raise Rs 500 crore," he adds.
With regulations in the loan-against-gold segment becoming tighter, Kochi-based Muthoot Finance‘s loan book is likely to grow at a much slower 16-25% this financial year, compared with 55-100% in the past. RBI has directed banks to reduce their lending exposure to gold loan companies from 10% to 7.50% of their net owned funds.
In an interview to Ooomen Mammen, chief financial officer, Muthoot Finance drummed down the effect of the RBI‘s advice to banks to limit their exposure to the gold-NBFC sector to 7.5%. He is hopeful that the cut in repo rate will reduce the interest rates on the company‘s borrowings
Muthoot Finance tells CNBC-TV18 that RBI's new guidelines to ensure good and fair practices won't affect them much because they already follow most of them.