Muthoot Fincorp expects 15-17% growth in assets management in current FY

Kerala-based Muthoot Fincorp expects 15 to 17 per cent growth during the current financial year in its assets under management (AUM), which is pegged at about Rs 12,300 crore as of now, a senior official of the gold loan company said on Thursday.

"We grew at 16 per cent last year ( in terms of AUM). This year also we expect to grow at 15 to 17 per cent.

We disbursed close to Rs 27,000 crore last fiscal with over 90 per cent towards gold loan," COO Muthoot Fincorp Limited, Vasudevan Ramaswami said in a press conference.

Presently, Muthoot Fincorp has over 3,600 branches in India, with seventy percent in southern markets.

It has 265 branches in Telangana and 317 in Andhra Pradesh, and is now planning to expand in the region subject to approval, he said.

"We have been opening about 200 branches every year.

We should be opening another 60 odd branches in AP and Telangana out of which Telangana will have 27," he explained.

In September 2019, Muthoot Fincorp issued non-convertible debentures (NCDs) to raise Rs 500 crore (including Rs 250 crore greenshoe option).

The funds raised would primarily be used to elevate the working capital and enhance lending, he said.

The company has about 1.9 million customers nationally.

Muthoot Fincorp recorded a healthy growth of 16 per cent for FY 2018-19 while theindustry grew at 13-14 per cent.

In Telangana and Andhra Pradesh, the company has registered AUM growth of 18.6 per cent in the current year (YTD) as compared to last year, he added.