Companies

Muthoot Capital Services to focus on vehicle loans

V. Sajeev Kumar Kochi | Updated on March 12, 2018

Shifting its focus from the gold loan business, Muthoot Capital Services Ltd has chalked out plans to concentrate on two- and three-wheeler financing in the current fiscal.

The company has set a target of Rs 690 crore for loan disbursement in the current fiscal in vehicle loans, which is more than double that in FY11-12. Last year, the company had disbursed Rs 300 crore in two-wheeler loans, Mr Thomas George Muthoot, Managing Director, MCSL said.

In an informal interaction with mediapersons here, he said the decision to stop gold loan financing was taken in April last year. The gold loan outstanding had dropped to Rs 5 crore from Rs 45 crore. He pointed out that Muthoot Fincorp, the flagship company of the group, would concentrate on the gold loan business.

MCSL, a listed entity of the Muthoot Pappachan Group, commenced the two-wheeler loan business four years back and subsequently extended its reach to all the southern markets. The company is now expanding its reach to new geographical boundaries in North India this year given the growth opportunities in the sector, he said.

MCSL had started operations in Gujarat and Maharashtra, excluding Mumbai, and has set a target of achieving a business of Rs 11 crore and Rs 5 crore respectively in these markets. It already has a robust network in the four southern States and Goa, he added.

The total customer base as on March 31 was more than two lakh and it is targeting addition of 1.55 lakh new customers in FY 13, he said

Published on June 14, 2012

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