Muthoottu Mini looks at 60% sales growth this fiscal at Rs 4,000 cr

Kochi-based mid-sized gold loan player Muthoottu Mini Financiers is looking to grow its loan sales by over 60 per cent in this fiscal to around Rs 4,000 crore as it embarks on a faster expansion.

The company, hailing from the same Muthoot family, closed FY22 with over 25 per cent growth and an AUM of Rs 2,500 crore which grew from Rs 1,994 crore in the previous fiscal.

The larger family entity Muthoot Finance is a listed company with over Rs 60,000 crore of AUM while the other one Muthoot Fincorp is the third-largest player with around Rs 10,000 crore of live loans.

The average loan growth rate in the previous three years was 22 per cent, and improved to 25 per cent in FY22 and hopes to clip at over 45 per cent this fiscal.

The managing director Mathew Muthoottu told PTI on Friday that he expects to clip around 45 per cent this fiscal and take the assets under custody past Rs 4,000 crore aided by the ongoing massive expansion under which it will open 170 branches this year, taking the footprint to close to 1,000 by the end of next March.

He said most of the new branches will come up in Gujarat, Maharashtra, Haryana, Delhi-NCR and Andhra-Telangana.

The chief executive PE Mathai said with the rating upgrade to A-, which is three notches up in the past three years, the company hopes to tap more growth capital from banks.

Currently, they borrow heavily from the market and its debt funding, through NCDs, stood at Rs 1,600 crore in FY22 and bank loans at Rs 1,005 crore.

"We want to make the funding source equal from this year and hopefully, the rating upgrade should help," Mathai said, adding funding from just seven banks till a few years ago, currently they have relationships with more than 20 banks now.

The company serves over 4 lakh customers and has 10 tonnes of gold under custody now. Last year, it added 1.7 lakh new customers and the same stood at 55,000 this year so far.

The company has over 830 branches spanning the home state of Kerala, where it has 170 branches, Karnataka, Andhra, Telangana, Tamil Nadu, Pondicherry, Maharashtra, Goa, Delhi, Gujarat and Haryana and are manned by around 4,000 employees.