Muthoot FinCorp to rely less on flagship gold loans

"We are in a transition phase now. Traditionally, we have been a gold loan company. In the past, almost 98% of the revenue used to be from gold loans only. But now things are changing. We have taken a business strategy way forward that we would like to become a of choice because we see a bigger opportunity in the ," Varghese said in an interview.

Muthoot FinCorp is also planning a in two to three years though the plan has yet to be finalised. "We have not gone into a specific project plan because we have a lot of time to catch up on that. We don't have a definitive plan yet," Varghese said.

Muthoot FinCorp had Rs20,487 crore of loan assets on a standalone basis including Rs18,000 crore worth of gold loans and the rest comprising loans against property and SME loans.

Varghese said the company is aiming to boost the share of earnings from non-gold verticals to 80% in 3-4 years from just 2% currently. "The intent is not to reduce gold loans; it is to do other businesses and serve more customers...There are still millions of families - around 120 to 150 million, which are not part of a formal credit system. And we are a company with the purpose to serve them. Keeping that in mind, now we have started loan against property, the mortgage offer, SME offering from Muthoot FinCorp itself," he said.

This fiscal, Muthoot FinCorp is planning to recruit 4,000 people for its new lines of business. Last year, it had hired 3,500 people of which 1,500 were deployed for new businesses. The company currently has a headcount of about 22,500.

Last year, the company received regulatory approval for opening 200 branches. Varghese said nearly 100 branches have already been opened and a similar number of branches will be opened in the first and second quarters of this fiscal.