Money & Banking

Margadarsi Chit Fund’s turnover surpasses Rs 10,000 cr

Our Bureau Hyderabad | Updated on June 21, 2018

Margadarsi Chit Fund Private Ltd has achieved a turnover of Rs 10,204 crore in the financial year ended March 31, 2018. This was disclosed by it's Managing Director, Sailaja Kiron, at a press conference held here on Wednesday.

"We are confident that the company will surpass Rs 20,000 crore mark in turnover by 2025," she said.

It is also contemplating te possibility of becoming a non-banking finance company. The company's "strength" was enrolling financially potential subscribers that resulted in good recoveries at 99 per cent, Kiron said.

Set up in 1962 by Ramoji Rao, Chairman of Ramoji Group, Margadarsi now has 105 branches in Telangana, Andhra Pradesh, Tamil Nadu and Karnataka with 43,00 employees. Margadarsi will open about five new branches this year. The target for this year is to achieve Rs 11,000 crore turnover.

"We are planning to commence Rs 1 crore chits soon in addition to the present range of chits ranging from Rs 50,000 to Rs 80 lakh," she said.

For the disciplined subscribers, the returns could be in the range of 6 to 8 per cent in the long term. On the safety of investments, Kiron said organised chit funds were " highly" regulated and rate of failure is only one per cent.

On the impact of GST at 12 per cent, she said representation has been given to the government for relief as "it is too high for subscribers’’.

Published on June 20, 2018

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