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
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…
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.
