Manappuram Finance to focus on MSME sector

“We want to be an active player in the MSME sector. We are diversifying our business portfolio by lending to MSME, small home loans, vehicle financing,” Managing Director and CEO VP Nandakumar said.

Queried about the asset-liability match following the business diversification, he said a major portion of business will be financing against gold and the company has more than sufficient capital adequacy ratio. 

According to Nandakumar, the company’s assets under management (AUM) is about Rs 17,000 crore and nearly 75 per cent of that is the gold loan portfolio. He said the company lends about 67 per cent of gold value and already nearly one-third of the gold value is with the company as security.

Manappuram Finance has come out with an issue secured non-convertible debenture with varying interest rates depending on the instrument’s maturity.