Page 34 - Banking Finance AUGUST 2015

INTERVIEW

In fact, we are now rolling out an advanced and centralised Q. Your Company has been emerging and
Automatic Intrusion Alert Management System (AIAMS) rapidly expanding with a sound presence in
to provide even more security to the gold held in safes and South India. What are your plans of expansion
vaults in branches. We have installed sensors at the in other parts of the country?
branches that, upon detection of a potential intrusion

attempt, send an alert to our central monitoring station We have close to 3,300 branches across 27 states and UTs.

where on-duty staff can view a direct video stream from It is true that 70% of our branches are located in the

cameras located at the branch. They can then initiate Southern states. However, it may be noted that the share

appropriate security responses instantaneously. of the Southern region has come down from 82% in 2012,

which shows that gold loans are gradually gaining

Q. How has been your performance in the last acceptance in the Western, Eastern and Northern regions
fiscal year and what business are you eyeing in as well.

the current fiscal year? Q. How has your gold plus strategy created
entrepreneurial and employment opportunities
Fiscal year 2014-15 marked a turnaround as the company for the vast section of society?
was able to regain the growth track and report
encouraging results. Net profit for the year ended March

31, 2015 has gone up to Rs. 271.31 crores, a commendable To clarify, our gold plus strategy is about moving beyond

increase of 20 percent, compared to Rs. 225.98 crores gold loans to offer our customers options in microfinance,

reported in FY 2013-14. Operating income for the year mortgage based loans (including homes loans), vehicle loans

stood at Rs. 1,986.42 crores, a marginal decrease of 5.4 etc.

percent in comparison to Rs. 2100.46 crores recorded the

year before. Our higher profits were largely due to interest As for the link between gold loans and entrepreneurial

cost coming down by Rs 149.08 crore during the year and opportunities, it is a fact that for a long time gold loans

also the growth in volumes. were seen as a distress product. But things have changed

“ Manappuram was the first corporate entity to get into gold “ and today, a third of our gold loan
loans. Prior to us, gold loans were carried on in the same customers belong to the farming
age old manner. We invested in technology and developed and the small business
our own proprietary solutions. communities like the traders,
shopkeepers and the self-
employed-who use gold loans for

productive purposes, as a hassle-

Total gold loan disbursements during the year went up to free source of working capital to meet the requirements
Rs. 24,683 crores from Rs. 20,292 crores of the previous of day-to-day business. They also use gold loans for their
year. Likewise, the company's consolidated Assets under exceptional needs, like the requirement to build up extra
Management (AUM) also registered good growth, going stock during a busy season. Interestingly, even where they
up by 17.5% to Rs. 9,593 crores from Rs. 8,163 crores have availed credit limits from the banking system, they
recorded in the previous fiscal year. In fact, the growth in continue to avail gold loans for its flexibility and hassle-free
AUM was consistent across the four quarters reflecting experience, for meeting margin requirements etc.

the depth of the revival in the market. Q. Any other thought that you would like to

As for the current year, you may be aware that we have share with our readers.

recently diversified our business having ventured into Gold is deeply ingrained in the Indian psyche. There is no
microfinance, mortgage based loans (including housing wishing it away. That being the reality, the smart response
finance) and commercial vehicle finance. Accordingly, we is to try and get the best out of it. Gold loans (and gold
expect significant contributions from these segments in bonds) are but ways to make the best of our stockpile of
addition to expectations of reasonable growth in our gold gold. Ultimately, we should ensure that India's gold becomes
loans portfolio. our strength, rather than its weakness.

34 | 2015 | AUGUST | BANKING FINANCE