The liquidity crunch that impacted most of the non-banking financial companies (NBFC) this year is starting to ease off. Also, gold financiers have started seeing an uptick in their loan growth for first time in three years. George Alexander Muthoot, MD of Muthoot Finance, spoke to CNBC-TV18 about the business prospects and sector outlook for 2019.
"We expect assets under management (AUM) growth of 15 percent for FY19 despite hiccups in the NBFC sector," Muthoot said.
"Gold loan NBFCs are able to raise money at good rate from market," he said.
Talking about the loan growth, he said, “This quarter we may be hitting flat but next quarter things are looking good because in the month of December we were able to catch up what we lost in October-November and so January-February-March should see some more uptick and we should see 15 percent plus growth overall year-on-year.”
On branch expansion front, Muthoot said, “Branch numbers have not gone up significantly but it has gone up by about 100 branches every year. This year (FY19) also we may end up with about 150 plus new branches.”
“We are rationalizing our branches, we are closing or merging a few branches which are not that productive and opening new,” he added.
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