Company to infuse Rs 100 crore capital each in micro finance and housing finance businesses besides looking at re-enting vehicle loan financing segment
Looking to focus beyond its traditional gold financing business, Kerala-based Manappuram Finance has decided to dabble in to other segments of lending business beginning next year. The non-banking finance company is venturing into three areas -- microfinance, home loans and vehicle financing early next year, groundwork for which has just been completed.
After acquiring a housing finance licence through a shell company and a micro finance outfit recently, Manappuram would be infusing equity into these capital-starved businesses and grow them nationwide. There are also plans to revive vehicle financing after a 5-year gap, said V P Nandakumar, managing director and chief executive officer.
The company recently signed a non-binding pact to acquire majority holding in Asirvad Microfinance, a RBI-registered NBFC-MFI operating in Tamil Nadu, Kerala, Odisha, and Gujarat.
"The micro-finance company has a portfolio of Rs 2,000 crore but is starved of capital. We will infuse Rs 100 crore of capital there and would expand the company in central and western India," Nandakumar said on the sidelines of a conference organised by Indian Chamber of Commerce.
Earlier his year, Manappuram Finance had acquired Milestone Home Finance, a shell outfit with licence to undertake housing finance business.
"We don't have a portfolio yet as the HFC is a shell company. But we have our team ready now and would start lending immediately tapping our gold loan customers. Here too, we would infuse Rs 100 crore of capital," he said.
Manappuram had stopped giving vehicle loans about 5 years back when it was one of its key business verticals. "The business was lying dormant for all these years. With signs of revival in the economy we plan to restart this business again," Nandakumar said.
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