Car loan lender Muthoot Finance is readying up to boost its presence in Andhra Pradesh. The NBFC intends to add 150 branches to its current network of 200 in AP. Also, it would be recruiting new 1000 employees. The chief aim of the company lies in capturing the rural segment, according to its MD, George Alexander Muthoot.
He said the secured loan segment was increasing at a frequent constant speed for the company. The company which relies chiefly on gold loans has reported a 45 % increase in the division. The company is convinced in repeating previous year’s performance of around 100% increase in this division by March 2011.
The loan portfolio of the company is Rs 11,000 crore and 15% of it comes from Andhra Pradesh. The company plans to increase it to 20% in this fiscal.
Muthoot added, “South India is a key market claiming 70 per cent of the loans”.
The bad loans comprise around 1% of the total gold loans. The company sends legal notices and other notices to the holder for 18 months, and then the company sells off the gold given as collateral.
He said, ” The amount realised through the auction is always less than what we had extended as a loan”.
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