Muthoottu Mini Financiers targets ₹1,000-cr business this fiscal

Muthoottu Mini Financiers Ltd, the Kerala-based NBFC, is aiming to achieve a business growth of ₹1,000 crore in the current fiscal through its expansion and restructuring strategy.

The company has opened a zonal office in Vijayawada and 13 new branches in Andhra Pradesh as part of its expansion plan. The new branches were inaugurated digitally by Mathew Muthoottu, Managing Director of the company, from its Kochi head office.

With the inclusion of these new branches and the zonal office, the company will now have 806 branches across 10 States. The company also plans to spread its network to Gujarat, Maharashtra, Delhi, Haryana, Telengana, and a few more branches in Andhra Pradesh, in the coming years, he said.

As part of its revamp and to enhance growth, the company will launch self-governing zonal offices managed by zonal managers. “We are completely restructuring our operations by launching zonal offices, based on geographical divisions. Each of these zonal offices will have 70-100 branches, which will gradually scale up to 150. We are targeting to have 9 zonal offices by the end of this fiscal, of which, two are already functioning in Salem and Vijayawada, he said.

The company digitised the branches during the lockdown. This initiative enabled customers to avail gold loans by making a one-time visit to the branch for the pledge of their gold holdings. Customers had the liberty to make payments online and also avail seamless top-up facility on the existing gold loans. “We saw steady growth in the last few months, and plan to bring 25 per cent of our business from the digital platform.”

Muthoottu Mini Financiers reported a 25 per cent growth in its assets under management and a 44 per cent surge in profits last fiscal. The rating agency India Ratings and Research (Ind-RA) has upgraded the credit rating to BBB.. The company also plans to float an IPO in the next two years, he added.