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Muthoottu Mini Financiers is looking to open about 100 branches this fiscal and increase its book size by ₹1,500 crore.
“This fiscal year, we have planned to open 100 branches as part of our expansion. We are predominantly a South India based company with presence throughout India. We are looking at opening further branches in Andhra Pradesh, Telangana along with a few more branches in Delhi- NCR, Mumbai and Gujarat,” said Mathew Muthoottu, Managing Director, Muthoottu Mini Financiers.
The company has also set a target to grow the book size by ₹1,500 crore by the end of this fiscal year, he said.
“We expect to hit ₹7,000 crore assets under management by 2024 and might even think of an IPO down the line,” Muthoottu told BusinessLine .
As of now, the Kerala based non deposit taking NBFC has 806 branches and a book size of about ₹2,000 crore.
PE Mathai, CEO, Muthoottu Mini Financiers said the company also wants to improve the business of existing branches. “At present, business per branch is about ₹2.5 crore. This can easily be increased to ₹4 crore to ₹4.5 crore within one year,” he said.
According to the company, demand for gold loans is still very strong with access to credit still an issue. Catering to the middle and lower middle income segments, the average ticket size of gold loans for the company is ₹35,000 to ₹40,000.
Mathai said the NBFC is also in talks with banks to lower the cost of funds by two per cent to three per cent from the current rate of 10.5 per cent to 12 per cent.
“Our rating has improved to BBB stable. We are expecting further improvement in our bottom line. We have approached our banks and are getting positive responses,” he said.
According to Mathai, Canara Bank has sanctioned ₹100 crore at 9.5 per cent rate to the company.
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