Now Reading: Manappuram plans 500 new branches, targets 25-30% gold loan growth
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Manappuram plans 500 new branches, targets 25-30% gold loan growth
The Story in Brief
The Story in Brief
Manappuram Finance added 3.2 lakh new customers in the first quarter of FY27, taking its gold loan book 12% higher sequentially, ET BFSI reports. The company now plans to open 500 branches this year, benefiting from the RBI's removal of prior approval for new outlets. About 60% of the new branches will be in South and Central India, and 25% in Bihar, West Bengal and Odisha.
Gold loan yields rose 60 basis points to around 18%, and management expects them to stay there. Online gold loans now account for 86% of the book. But vehicle finance remains a drag: no fresh disbursements are planned this year, and gross NPAs have jumped to 13.3% from 10.4% a quarter ago.
The Indian Opinion
The 43% stock rally in a year reflects optimism, but brokerages staying cautious is a reminder that one good quarter does not cure chronic weaknesses. Manappuram's gold loan engine is firing on all cylinders, but vehicle finance, an asset-quality sinkhole, is being deliberately starved of fresh fuel. The real test will be whether the 500 new branches can sustain the 25-30% growth target without accumulating more bad loans than the company can digest.
Source: bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
Ashin Xavier: interesting
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