The vehicle finance company is expected to be launched in the next quarter, starting from Telengana and Andhra Pradesh. The company is also looking at launching a Loan against Property portfolio, though it would not be a major thrust area.
Commenting on the outlook, Muthoot said the company has reported a good growth during the first quarter of the year and would expect the growth to be at around 20-25 per cent during the whole year. The gold loan business has been seeing better growth, with the economy picking up, at around 20-25 per cent during the fiscal. The total Assets Under Management (AUM) to around Rs 850 billion by the end of the financial year, of which eight per cent would be housing finance business.
"We are seeing the economy picking up and demand growth. If there are no surprises, we expect to clock in a 20-25 per cent growth during this year," he said.
The company registered a 10 per cent growth last year.
During the quarter ended June 30, 2018, the net profit of the company grew 42.7 per cent to Rs 4.91 billion as compared to Rs 3.44 billion during the same quarter of previous year. The total revenue stood at Rs 16.32 billion as compared to Rs 13.77 billion during the same quarter of last year, an increase of 18.5 per cent. The company has 600 branches in Kerala, of which only three has been affected ba y the floods during the last month and it is not expecting major impact from the disaster, Muthoot said.
It has received the board's approval to raise around Rs 50 billion by way of private placements of redeemable non-convertible debentures, he added.