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Latest News :
  • The Muthoot Group Becomes One Of The First In The NBFC Sector To Launch An Al-Based CHATBOT - “MATTU & MITTU” Read More
  • Muthoot Vivaha Sammanam 2018-19 Read More
  • The Muthoot Group Supports Wheelchair Cricket India With Title Sponsorship Read More
  • The Muthoot Group donates Rs.1.5 crores to Chief Minister’s Flood Relief Fund Read More
  • Launch of Muthoot-CSK Limited Edition Gold Coin Read More
  • Muthoot Vivaha Sammanam 2018 Read More
  • The Muthoot Group’s - #TakingIndiaForward video among the Top 10 Youtube Ads of February 2018 Read More
  • The Muthoot Group’s Association with IPL – Principle Team Partner for Chennai Super Kings Read More
  • Golden Handshake Between the Muthoot Group & Shri Amitabh Bachchan Read More
  • NON-BANKING FINANCE COMPANY OF THE YEAR 2017 Read More
  • NBFC Brand of Kerala Read More
  • Muthoot Finance Registers 46% Increase in Net Profit Read More
  • Shri Alexander George Muthoot’s Interview to Career Connect Magazine on Education Trends Read More
  • Muthoot M George Foundation Launches Muthoot Snehasammanam 2017 Read More
  • Xandari Resort & Spa, Costa Rica Awarded The Tripadvisor Traveller's Choice Award For 5th Time Read More
  • St. George’s School Awarded For Eco Club By Directorate Of Education Read More
  • Shri Alexander George Muthoot in an interview with Hindustan Times Read More
  • Muthoot M George Excellence Awards Launched in Karnataka Read More
  • Muthoot M George Excellence Awards Launched in Kerala Read More
  • Shri M G George Muthoot is One of the Top 40 BFSI CEOs Read More
  • MITS Retains First Position in B-Tech S4 Results of M G University Read More
  • Shri M G George Muthoot is the 48ᵗʰ Richest Indian Billionaire Read More
  • Inauguration of Muthoot M George Excellence Award 2016 - Distribution of Cash Prizes for Telangana Government Schools Read More
  • Muthoot Finance subsidiary, Belstar Investments awarded Microfinance Organisation of the Year - 2016 Read More
  • Muthoot Finance selected as one of the 100 best companies for Women in India Read More
  • Now, make your WILL online with Muthoot Securities in just 30 minutes Read More
  • The Muthoot Group launches ‘Fair Play Gold Coin’ for Dhanteras to commemorate partnership with Hero Indian Super League Read More
  • The Muthoot Group announces association with Hero Indian Super League for the third consecutive year Read More
  • Muthoot Finance gets upgradation in rating for long term debt: ICRA Read More
  • MUTHOOT FINANCE RECOGNISED AS AN EXCELLENT WORKPLACE, GETS SHOWCASED ON CNBC TV-18 Read More
  • Muthoot Homefin Opens Corporate office in Mumbai Read More
  • NABH Accreditation for MGM Muthoot Medical Centre, Kozhencherry Read More
  • Inauguration of Muthoot M George Excellence Award distribution 2015 & Cash prizes for Telangana Government Schools Read More
  • Toilet Complex at St. Thomas Higher Secondary School, Karthikappally Read More
  • Muthoot Sneha Sammanam 2016 Read More
  • Foundation Stone laid for Sansakara School Read More
  • Shri. M.G. George Muthoot, Chairman of The Muthoot Group spoke to BW|Businessworld’s Sapna Bhardwaj on his budget expectation Read More
  • Expectations on the forthcoming budget by Shri M.G. George Muthoot, Chairman, The Muthoot Group Read More
  • The Muthoot Group and WWF-India join hands for 'Friends for Life’ Read More
  • Launch of Muthoot Management Academy Read More
  • Muthoot Finance Healthy Wealthy Kerala road show flags off from Cochin Read More
  • Muthoot Finance launches Muthoot M George Excellence Award 2014 & Cash prizes for Karnataka Government Schools Read More
  • Muthoot Finance announces 'Muthoot ATM Transact & Win Contest 'Winner Read More
  • Muthoot Finance Appoints two Additional Directors as Board of Directors of the Company Read More
  • Muthoot Global Money Transfer Services launched in European Countries via web portal www.rupee2india.eu Read More
  • Muthoot Group unveils The Muthoot Group Fair Play Award trophy. Read More
  • Muthoot Group associates with Indian Super League. Read More
  • Muthoot Diagnostic centre receives ISO 9001:2008 Certification Read More
  • Muthoot launches its CSR initiative “Muthoot Snehasraya” to spread awareness Read More
  • Saffron Route to host its first education fair for students Read More
  • Muthoot Group ties up with Burlington Group Read More
  • Muthoot Finance Ltd successfully completes its Institutional Placement Program Read More
  • Muthoot Finance launches 37th ATM in Bangalore. Aims to open100 ATMs in Karnataka region by end of 2014 Read More
  • Budget Should Give Policy Directions & Accelerate Growth’. Mr. George Alexander Muthoot, MD, Muthoot Group, talks to BusinessWorld Read More
  • International Nurses Day was celebrated at MGMMMCK,Kozhencherry Read More
  • Medical camp conducted at Mar Thoma Church Auditorium, Kuzhikkala Read More
  • Muthoot Group Launches Instant Domestic Money Transfer (DMT) Services By Joining IMPS Network Read More
  • Mr. M.G George Muthoot, Chairman Muthoot Group awarded with ‘Emerging Business Leader of the Year’ title by Hon’ble Union Minister of Home Affairs, Shri Rajnath Singh at AIMA Managing India Awards, 2014. Read More
  • As a part of CSR activities of Muthoot Group, umbrellas were distributed to students of CMS High School, Chalukunnu, Kottayam Read More
  • Muthoot Finance launches its first ever white label ATM, a landmark development to revolutionize financial inclusion and financial services in India. Read More
  • M G George Muthoot Honoured with the Kerala State Business Excellence Award and GJTCI Excellence Award Read More
  • Muthoot M George Excellence scholarships launched in Andhra Pradesh Read More
  • Asian Sustainability Leadership Award & Asian BFSI Award Read More
  • Dr. Mrs. Sara George, Principal, St.George’s School receiving the coveted Award for “Best Principal of the State” for the year 2012. Read More
  • Dr. Sara George Muthoot conferred with ‘Spark of Excellence Award’ Read More
  • St. George's School Recognized in Top 10 Schools of South Delhi Read More
  • Muthoot Finance Embraces Kochi International Half Marathon Read More
  • The Muthoot Group eyes a new Banking Licence. Read More
  • Virender Sehwag Inaugurates Second Season of Muthoot Group’s Paul George Memorial Tournament Read More
  • Kapil Dev Felicitates the Winners of the Paul George Memorial Tournament Read More
  • Muthoot Finance bags IT innovation award under BFSI category Read More
  • Muthoot M George Excellence Scholarships Launched in Karnataka Read More
  • Muthoot Group Wins Golden Peacock for HR Excellence Read More
  • George Alexander Muthoot is Dhanam Businessman of the Year 2012 Read More
  • Promoters of Muthoot Finance apply for Banking License Read More
  • Muthoot Finance Receives ‘In-Principle Authorisation’ from RBI to Establish White Label ATMs Read More
  • Muthoot Haathi Mera Saathi – educational initiative’ Reaches Jharkhand Slums Read More
  • Chairman of Muthoot Group Conferred With ‘Maulana Jamil Ilyasi Excellence Award’ Read More
  • Muthoot Finance launches Its Western Union Counter Read More
  • The Muthoot Group flags off its Golden Bat for IPL 6 season Read More
  • Muthoot Precious Metals Corporation unveiled its new engraved gold coin Read More
  • Muthoot Finance Ltd. Wins The Rotary Binani Zinc CSR Award Read More
  • Muthoot Finance wins Skoch Financial Inclusion Award 2013 Read More
  • Paul George Memorial Tournament Read More
  • St. George’s School Principal honoured with Gem of India Gold Medal Read More
  • Muthoot Group Wins Golden Peacock Award For Corporate Governance Read More
  • ‘Asian BFSI Award for Most Admired Loyalty Program’ Read More
  • Under-19 captain Unmukt Chand felicitated By Muthoot Group Read More
  • Business Excellence Award –2012 Read More
  • St. George’s School felicitates IAS topper Ravi Dhawan Read More
  • Alexander George Muthoot, Director The Muthoot Group, shared his views with Economic Times. Read More
  • Students of University of North Carolina visited Muthoot’s corporate office in Cochin. Read More
  • Sh. George Alexander Muthoot addressed the gathering at the Indian Business Conference held at Columbia Business School. Read More
  • 7th International Conference on CORPORATE SOCIAL RESPONSIBILITY at the Dubai Global Convention 2012. Read More
  • Award for CSR Read More
  • Muthoot Group - the only sponsor to launch a Gold Coin for its team Read More
  • Business Leadership’ for the year 2012 at Golden Peacock Awards Read More
  • Asian Businessman of the year 2011 Read More
  • Read More
  • Felicitation at Delhi Read More
  • Businessman of the Decade Award Read More
  • Life Time Achievement Award Read More
  • TIMES OF INDIA award for Excellence in Bussiness Read More
  • Awards to "Shri M.G. George Muthoot", Chairman of The Muthoot Group Read More
  • The Open International University, Colombo Awards Ph.D to Mr. George Alexander Muthoot, MD The Muthoot Group Read More

The Muthoot Group eyes a new Banking Licence.

The Muthoot Group, with businesses across diverse sectors, has set its eyes on a new banking licence, believing it is well suited for transforming Muthoot Finance, the country’s largest gold loan company, into a bank. The group’s managing director, George Alexander Muthoot, shares his plans with Neelasri Barman. Edited excerpts:The Reserve Bank of India (RBI) has capped the loan-to-value (LTV) ratio for advances against gold jewellery at 60 per cent and standardised the valuation of the collateral. How much did this impact you?

Yes, it did impact us. Some of our customers are (now) going to traditional money lenders. We had, with much difficulty, brought them into the organised sector from the unorganised one. Some of them might even go to banks, since the latter don’t have this LTV cap. Being the regulator, we don’t argue with them (RBI). We are waiting for them to probably take a second look at it. We also make requests to them on this; it is for them to decide. The hit we have taken as of date is not major. But if it continues, it can be substantial.

We might have lost a little less than 10 per cent of our customers due to this. Besides, there are now stringent KYC (know your customer) norms. Did you lose customers because of that?Most of these things even we do. The regulations are for the entire spectrum of people and not Muthoot alone. These are good practices, strengthening the sector.
In the short term, some pain may be there but in the long term, it will be positive for the sector. In the short term, we may lose some customers to money lenders.Did you increase the frequency of gold auctions due to fall in gold prices in the recent past?Gold prices fell 35 per cent in the international market. But in the India market, it has been only 11 per cent.
We auction the gold only after 18 months, if a loan hasn’t been repaid. Yes, gold auctions have risen from 0.5 per cent of total advances to one per cent.Has the competition increased, with many banks venturing aggressively into this business?Outside South India, the concept of organised gold loans is not there.
In the past 10 years, we have spent crores of rupees in advertising the concept of gold (as collateral for a loan). It has benefited us, and other non-banking finance firms; it is also benefiting banks. Since more banks are getting into this business, the respectability of taking a gold loan has increased. This is a positive side.
The negative side is that any new player coming in will certainly take some of our share. We have a gold loan portfolio of about Rs 25,000 crore. We continue to be the largest. For us, new markets for gold loans are also emerging. In the next two quarters, we expect this portfolio of ours to be flat, since the total economic activity is also taking a hit. After that, probably, things should improve.What are your fund raising plans in the current financial year?Next Monday, we are coming with a public issue of non-convertible debentures (NCDs). This will be for working capital.
The tenure of the debentures vary from one to six years. The coupon rate varies from 10.50 per cent to 12 per cent. This year, including this issue, we would have raised about Rs 1,000 crore through NCDs. Currently, since there is not much growth in assets, we do not need too much of funds. But we might do two more NCD issues in the current financial year.You have applied for a bank licence. Have you appointed a consultant for the ground work? We do not need a consultant. We feel we are well suited for transforming Muthoot Finance into a bank. We are the largest in the gold finance business. The next level should be a bank. If it is a bank, the liability options will be much more.
My cost of funds can come down. Then, even my lending cost will come down and the people whom I serve currently will get the benefit of loans at lower costs. The average lending rate is currently 19.2 per cent. Currently, my average cost of funds is 12.5-13 per cent. We already have a platform ready for banking. This includes IT, treasury management, risk management, personnel and branches with large reach.
We are doing financial inclusion work, the key word for new banking licences. We may just have to tweak a few things for the banking business.What is the progress you have made in your plans to set up white-label ATMs?We only need to get the last sanction from RBI and then will start rolling out white-label ATMs in our branches and other strategic places. It gels with our business. The approval may come this year itself.

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