Muthoot Pappachan Chits of Muthoot Pappachan Group, has crossed a milestone of over 1,000 customers within 90 days of its first branch opening in Bengaluru.
This branch has so far generated business of Rs 45 crore from retail chit groups.
For the current financial year, Muthoot Pappachan Group is looking at a business of ₹1,000 crore in Karnataka. Before the end of the financial year, the group aims to expand the chits business beyond Karnataka.
Thomas John Muthoot, Chairman and Managing Director, said the group is guided by the vision to provide the common man with financial products, solutions and services, with advance digitisation to serve their needs.
It has completely automated the enrolment process – both booking of business and documentation – , with 90 per cent of prize money release happening within timelines.
The channel partner/counter staff can directly enrol customers by getting a one pager filled and the KYC done across the counter.
Roy John, Vice-President of the chits business, said that chits are a popular form of saving and borrowing in South India and a very strong source of financial management especially for large retail groups.
Accomplishment of the milestone comes as a result of optimisation of multiple sourcing channels and effectiveness of the synergy between Muthoot Fincorp, an NBFC, and Muthoot Pappachan Chits.
The organised market size for chit business is approximate Rs 45,000 crore and Muthoot Pappachan Chits sees itself as one of the major players in the coming years.