Manappuram Finance to be Less Reliant on the gold loan portfolio
As Manappuram NBFC is mainly known for providing its Gold Loan products to the customers, but recently the company has decided to reduce its reliance on the gold loan and to expand their business in other financial products too.
It is also said by the company that it was confident that its issue of non-convertible debentures to raise a base of Rs 2 billion, with options of oversubscription to the tune of Rs 8 billion, would be successful.
Furthermore V P Nandakumar, the MD, and CEO of the Manappuram Finance Ltd. Said that presently the gold loan portfolio is 75% of the company’s business, microfinancing is 15% of the company’s business, 5% is because of the commercial vehicles, home finance 3%.
It is also said by VP Nanda Kumar that the company is now planning to keep the gold loan portfolio up to 50% and other products also 50% over the next 10 years.
It is also announced that at the end of September 2018, the company's assets under management (AUM) stood at Rs 170 billion and revenue at around Rs 60 billion. Furthermore, the company is expecting a growth rate of 20 percent on the consolidated book this financial year, as compared to the 15 percent growth rate recorded last year, said by Nanda Kumar.