Welcome to manappuram.com! In order to provide a more relevant experience for you, we use cookies to enable some website functionality. Cookies help us see which articles most interest you; allow you to permit us to deliver content tailored to your interests and locations; and provide many other site benefits. For more information, please review ourPrivacy Policy


Manappuram Finance sees gold loan portfolio growing by 10-15% in FY21

Saturday, September 05, 2020

Financial Express 

NBFC Manappuram Finance said on Friday that gold loan portfolio is estimated to grow by 10-15% in the current fiscal despite a slowdown in new customer acquisition.

VP Nandakumar, MD & CEO of the company, said that business is robust in the gold loan sector, but the NBFC would stick to conservative lending and focus on consolidation of the company.

“Overall demand for credit has not reached the pre-Covid state. In our case, existing customers have taken more loans and compensated for the slowdown seen in new customer acquisition. Customers have also leveraged on the higher gold price,” he added.

The Kerala-based lender, which also operates a home loan, microfinance and commercial vehicle leasing subsidiary, has some arrears in the non-gold loan business due to restructuring.

“Around 25 % of the customers in microfinance, housing finance and vehicle leasing business have availed the moratorium. Collections in the microfinance business will cross 85% this month, collections in the vehicle finance division and housing finance is expected to touch 90% this month. We expect some credit loss in the coming quarter in this sector, but we have provided for that,” he added.

New loan disbursals are lower in the non-gold portfolio and seen around 50% when compared to last year, he said. The company’s non-gold loan businesses now account for a 28-30% share of its consolidated AUM. 

Read more