George Alexander Muthoot, MD of Muthoot Finance, spoke to CNBC-TV18 about the company's business plans and growth outlook.
“We don’t have any exposure in non-banks. Our exposure comes on banks but having said that, you need to know little more about the gold finance companies where 90 percent of our funding is in gold loans. Gold loans are of very short duration, three-four months, everyday we have Rs 150-200 crore of loan being repaid at our branches and the similar amount of loan disbursal also. So our asset liability match or mismatch (ALM) is not there. We are quite comfortable,” he said.
“90 percent of our business or 88 percent of our business is gold loan. So only 12 percent of our total AUM, so it is just insignificant,” Muthoot added.
“We are seeing a weak phenomenon, I am sure in a week’s time, it will all correct. It is not a long-term phenomenon,” said Muthoot.Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.