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Gold loans is seeing reasonably good growth in H2FY20, says Nandakumar of Manappuram Finance

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The Manappuram Finance stock was near a 52-week high and is up 85 percent in 2019 so far. VP Nandakumar, MD and CEO of Manappuram Finance shared his views and outlook.

Gold loans were getting reasonably good growth in the second half , said VP Nandakumar, MD and CEO of Manappuram Finance. The Manappuram Finance stock was near 52-week high and was up 85 percent in 2019 so far.
“I feel gold loans are getting reasonably good growth in the second half. Other sectors like vehicle finance, microfinance etc – even the though the growth is coming, we see some slowdown in the rural and semi-urban markets but we expect a reasonable growth in our business,” he said.
“Our targeted growth is around 20 percent compounded annual growth rate (CAGR), which will be definitely achieved. The trends are towards that,” he added.
When asked if there were any problems with the loan quality, he said: “We are little cautious about lending in microfinance. Similarly we are little more cautious in vehicle finance and affordable housing. Our primary objective is a CAGR of 20 percent. We are going with that emphasis and as such we don’t face any problem.”
Asset quality remained unchanged and Q2 growth may be slowed down but judging from the trends, he said, that the quality will be maintained.
“In gold, there is no need of extra caution because these are all small ticket loans for a short-term, the average life of the loan is around 70 days. So we don’t have any worry there. Commercial vehicle (CV), affordable housing and microfinance – we are little more cautious,” he further added.
He said, “In gold loan we are getting about 4,000-5,000 new customers per working day. Other businesses also are benefited by these gold loan customers. We have a large customer base. So, all our businesses are benefited out of that customer base except microfinance loans."

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CompanyPriceChng%Chng
SBI Life Insura1,076.65 26.20 2.49
Bajaj Finserv13,525.05 323.85 2.45
Hindalco400.05 8.30 2.12
Divis Labs4,921.15 96.40 2.00
UltraTechCement7,616.70 126.40 1.69
CompanyPriceChng%Chng
Bajaj Finserv13,525.35 324.75 2.46
UltraTechCement7,605.05 116.10 1.55
Sun Pharma703.55 9.55 1.38
Titan Company1,722.55 21.90 1.29
Tata Steel1,298.10 16.20 1.26

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.41750.01750.02
Euro-Rupee87.80600.20000.23
Pound-Rupee102.75000.43800.43
Rupee-100 Yen0.67460.00160.23