India's Muthoot Finance to continue Gold business
Muthoot Finance and 25 other companies, including Tatas, Reliance, Birla and India Post, have applied for bank license.
Two weeks after applying for a banking license, India's largest private gold mortgage player Muthoot Finance, said it can easily launch commercial lending business with as many as 2,000 branches.
According to Muthoot Finance MD George Alexander Muthoot company's experience in the field is the biggest asset are better suited than many other applicants in this regard with better reach in rural markets.
On whether the company will continue with the gold loan business if it gets a banking licence, he said there is no question of shutting that down as there is no regulatory requirement to shut down the existing business.
Many of company's 4,200 branches are in tier 2,3 & 4 towns in the country and can be immediately converted into a full-fledged bank branches.
Analysts said with large existing customer base and strong brand image makes it an eligible candidate.
With 74 years in gold financing, the company has over 4,200 gold loan outlets across 21 states and four Union territories, and employee strength of over 25,000 with a gold loan portfolio over Rs 26,000 crore as of last fiscal.
Muthoot Finance and 25 other companies, including Tatas, Reliance, Birla and India Post, have applied for bank license. Last month the company got an in-principle go-ahead from the RBI to launch white-label ATMs and it plans to set up at least 9,000 money vending machines over the next three years.
Sumber : Google
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