Page 33 - Banking Finance AUGUST 2015
P. 33
INTERVIEW
Interview
with
MR. V.P. NANDAKUMAR
MD & CEO, Manappuram Finance Ltd
Q. How and from where did the idea of Manappuram was the first corporate entity to get into
providing loans against gold originated? gold loans. Prior to us, gold loans were carried on in the
same age old manner. We invested in technology and
Gold loans have been popular as a source of raising money developed our own proprietary solutions. We launched
for centuries. Traditional moneylenders like the Chettiars many product innovations, for example, offering
and Shroffs have been lending against gold for ages. So, progressively higher loan amounts at higher price points.
the basic concept is nothing new. This was later backed up by an advertising campaign
revolving around high-profile and credible brand
However, what has changed in recent years is the entry of ambassadors with strong regional appeal. Of course, we
the organized sectors, especially the NBFCs from Kerala. were also helped by the fact that gold prices went on a
For long, the gold loan business was carried on by local bull run beginning in 2002 and going up to 2012 which
moneylenders and pawnbrokers in a traditional manner. added to the popularity of gold loans.
When NBFCs came into the field, they introduced technology
and modern management practices to scale up the activity Q. Your tagline "Energizing gold, empowering
and establish a nationwide presence. people". How far you have been able to succeed
in providing benefits to the common mass?
Q. Please tell us about your promoters?
We have about 3,300 branches across India now and good
Manappuram Finance Ltd. is a professionally run company chunk of these are located in semi-urban and rural areas.
that I promoted in 1992. Today, I and my family hold Besides, the typical gold loan has a ticket size of less than
approximately 35% of the total equity of the company. A Rs.40,000 and is repaid within 3 - 4 months. Clearly, it
similar share is held by various Indian and foreign private indicates that the bulk of our customers belong to the
equity funds, while the balance is dispersed among the lower strata of society. They come to us because we offer
public. The shares of the company are traded on both the them a way out of the clutches of local moneylenders and
BSE and NSE. pawnbrokers whose terms, as we know, are quite adverse.
Q. Manappuram Finance Ltd has emerged as a Q. Security of Gold deposits of customers must
leading nonbanking financial company (NBFC) be your high priority. What steps have been
in India under your stewardship? What is the taken by you to assure consumers that their
secret of your success? life savings are safe?
If there is one simple management dictum that I would To begin with, all the gold jewellery we accept as pledge
like to swear by, it would be: "what you do is not important, is fully insured. Besides, our security system has multiple
how you do it is important." I understand Shiv Khera said checks and balances to deter thefts and robberies as well
something similar too - "winners don't do different things, as internal frauds.
they do things differently."
BANKING FINANCE | AUGUST | 2015 | 33
