Muthoot Group may consider foraying into the banking sector if it feels that such an exercise would be a strategic fit with its existing lines of business, Alexander George Muthoot, Director, Muthoot Group said.
The gold-loan non-banking finance company (NBFC) may take up the banking business if the RBI gives a separate licence for the bank based on the work it did in all these years, he said.
Muthoot Group will definitely evaluate an entry into the banking sector, but will not convert Muthoot Finance, the flagship company of the group, into a bank.
But he made it clear that Muthoot Finance will never be converted into a bank even if the guidelines permit.
Muthoot Finance is looking to grow its assets under management by 10 per cent this fiscal, MG George Muthoot said.
The company plans to open 300-400 branches this fiscal, taking the overall network to about 4,500 branches, media reports suggest. The total branch network was only 37 in 1993.
The company has around 70 per cent of its branches in semi-urban and rural areas. The average size of each loan is Rs 35,000, and nearly 60 per cent of the loans is less than Rs 1 lakh.
The new branches will mostly come in these regions and is going to help improve financial inclusion, the chairman said.