Muthoottu Mini Financiers eyes 75% AUM growth in FY22

By: |
May 01, 2021 8:42 AM

MMFL had closed nearly 100 branches in 2019 and was in a consolidation phase after lagging way behind Muthoot Finance and Muthoot Fincorp in book value and AUM.

MMFL has currently four lakh active customers, predominately from rural and semi urban areas.

Another NBFC from the Muthoot family is planning big, with the gold loan business doing well because of the pandemic. Kerala-based Muthoottu Mini Financiers (MMFL) has plans to open 100 branches across the country, and is targeting a 75% growth in assets under management (AUM) in the current fiscal, Mathew Muthoottu, managing director of MMFL, said.

MMFL had closed nearly 100 branches in 2019 and was in a consolidation phase after lagging way behind Muthoot Finance and Muthoot Fincorp in book value and AUM.

“Gold loan business is looking very good at this point of time due to the uncertainty as people need money and banks are not willing to lend. After the first lockdown, people wanted money to restart their trade, small shops and business, etc. Going forward, we believe gold loan has an essential part in servicing immediate capital requirement before banks come in,” Mathew Muthoottu said.

The gold loan NBFC achieved a growth of 40-50% in the last fiscal in spite of 2-3 months of complete lockdown.

MMFL has currently four lakh active customers, predominately from rural and semi urban areas.

“Before 2020, we were in a consolidation phase and closing down loss making branches. Now, we are planning to increase our branch network to 900 from 806 in this fiscal and gold loan AUM of Rs 3,500 crore from the present level of Rs 2,000 crore,” he added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1SBI invites bids for selling NPAs worth Rs 217 crore
2We are heading towards gross NPAs of 2% on a sustainable basis: V Vaidyanathan, MD & CEO, IDFC First Bank
3Bay Tree Holdings cuts stake in Yes Bank by more than 2%