Three branches of Muthoot Finance Ltd in Kerala have been affected due to the floods, said George Alexander Muthoot, managing director of the company.
The MD, however, said that the the gold loan business won't be affected.
“Gold is stored in the strong room or in the safe. It is actually safe, it only gets wet; you do not lose it but we will have a difficulty in retrieving the document,” he said. However, he added that the core banking system could help with the difficulties.
Muthoot said that less than 4-5 percent of the company's business comes from Kerala.
According to him, banks who have lent to micro, small and medium enterprises (MSMEs) or small shopkeepers in Kerala are likely to be impacted.
It’s been almost two weeks of incessant downpour in the state, resulting in the worst flood since 1924.