George Alexander Muthoot, MD of Muthoot Finance, said, “The asset quality book has come up well now, I am not very sure about the exact number but I am sure it (collections in Belstar MFI) is above 90 percent.”
He believes, for the full year, the company will be able to achieve 15 percent growth in assets under management (AUM).
Q1FY22 was not good but Q2FY22 is looking better. “We are seeing pickup in demand all over the country both in rural side, as well as in towns. So, we should see growth happening in Q2FY22. However, not as good as Q2 of last year,” he said, in an interview with CNBC-TV18.
He mentioned that he expects the MFI book to increase to Rs 4, 000 crore in the next 12-15 months.
On affordable housing business, he said, “In the last two years, affordable housing sector has not been doing well. We are starting to see lending happening in the sector. We are having a very cautious approach. We see slow pickup of the affordable housing book in our company from Q3, Q4 onwards.”
Muthoot Finance's subsidiary, Belstar MFI raised Rs 350 crore from a host of different investors. With this, Muthoot Finance's stake came down to 57.89 percent from 70.01 percent.
“Our stake which was about 70 percent, will come down to about 60 percent. MFI is a sector which needs a lot of capital and deep pockets and somebody coming from outside is definitely welcome, but we will continue to have a majority stake in there,” he added.
For the full interview, watch the accompanying video.