gold loan nonbanking finance company (NBFC) recently received approval from the Reserve Bank of India (RBI) to open up 150 new branches across the nation. The RBI’s nod will give a fillip to growth momentum and it will help the company to further expand its customer base and assist new customers to avail of gold loan finance and other services offered by the company.
With the challenges posed by the pandemic, there was a reported spike in demand for credit. Given the barriers faced by the underbanked to avail credit easily, NBFCs and gold loan financers have emerged as a credible option for borrowers to meet their capital requirement for business needs or personal finance.
Finance will be opening new branches after a gap of nearly three years and this new expansion will help in deepening reach to the underbanked and underserved customers across India.
The company plans to carry out branch expansion across South India and North India. Branch expansion will also aid in creating employment opportunities in the sector as the company plans to train and hire 600 more people to support this expansion.
Speaking about this positive development, Mr. George Alexander Muthoot, MD, Muthoot Finance, said “At Muthoot Finance, our aim has always been to make credit accessible to all, and overcome barriers that people often tend to face in the process of availing credit. We would like to thank the RBI for granting us the much-awaited approval to expand our operations and open 150 new branches across India. The RBI’s nod for branch expansion is a positive development for our business and it also reinforces regulatory confidence in the gold loan NBFCs. As the economy gradually recovers, the gold loan demand remains steady and the RBI’s nod for branch expansion reinforces our optimization about growth of 12-15% in gold loan for FY23.”
He added, “The 150 new branches will add to the existing network of 4617 branches and we plan to operationalize these branches by the next two months. With this step, we aim to deepen our penetration, especially towards the underserved segment of the society, support our customers in fulfilling their dreams and also create employment opportunities.”
Muthoot Finance had also recently expanded their doorstep service of gold loan@home across South India in order to make credit even more accessible and easy to avail. The company saw consolidated assets under management growth of 11% to Rs. 64,494 crores and a profit of Rs. 4,031 crores for FY22.