The company is now in 75 locations and continued to open branches in 13 locations within two months.


NEW DELHI: Muthoot Housing Finance expects to grow 20 percent this year, said Pavan Gupta, the company’s CEO. On Asset Management (AUM), the company grew 32 percent in 2018-19. The company is now in 75 locations and continued to open branches in 13 locations within two months.

In an interview with kit Sharma ET Realty, Gupta discussed the impact of Covid-19 on the real estate industry and their plans. Organized information:

How is your current manual?

Now our AUM is only $ 1,200. We offer loans of up to 25 million, however, about 80 percent of the work is under Rt 10 lakh and most of the tickets are 6.5 lakh. At Haimari (AUM), we are up 32 percent in FY 2018-19 and expect to be up 20 percent this year.

What is your NPA?

Our non -performing loan (NPA) represents three percent of what the NPA pays one percent and it manages to be around 5% but Gupta insists that its debt is very low, which is 0.4 percent. He expects to reduce the full NPA to 2.5 percent in two to three months.

How about the first three months of 2020 for the real estate industry?

We expect Q1 2020 to be better than Q1 2019 given the evolving financial conditions for many of our companies. On the positive side, we started to look back calmly, but all of a sudden this Coronavirus condition stopped abruptly. “

Although other than Coronavirus his spread is not good, as some cases or other cases also occasionally occur, we have said since 2018 that it is a quarterly problem but every quarter there is something new for him. And other solutions are there, but I would say that when it comes to the real estate industry, I divide it into two.

One of them is money laundering: HFCs or NBFCs, which have a lot of revenue-generating potential, are in trouble because they don’t make money. They can’t find new loans, loans, and scams in the purchase book in the future for no reason.

But when I got back to the affordable house, well, the luxury house was still running smoothly and the condition was not bad in terms of the luxury house. For us as a company, we don’t face big problems because affordable housing, especially in big cities, works well. But as the industry has shown, yes, there is a problem.

It’s not the companies that work on affordable housing that are changing in the same way. And as the days go by, when I talk about Muthoot Housing Finance, at the beginning of the crisis in 2018, I say that the first or second half of this year is a time when we have a hard time finding money. . But over time, we came across situations where we had to suspend payments or had to go down. We do not hesitate not only to make money but also to see how the market changes when a crime is on the rise.

Also, some companies do not have strong support or large private funds to support them, they have problems and still have problems. But companies that leverage their own money or advertising later, make it all easier.

Going forward young players will be distracted and will join one or more.

Because the first loan is light before September 2018. So for the side of this stuff, only people are worried. They don’t have much of a problem with debt. All these things have changed. If you look at around 35 real estate companies and it started three to four years ago, not all of them get strong support because they don’t have a problem with debt now that the company is already trying to borrow.

So there must be a connection and it has already happened.

How do you plan to keep your business affordable?

For us, the cost of surgery will continue to increase with the small ticket size. Heart rate is very high with paid services and high postage. But fortunately, Muthoot Fin crop has 3,600,000 in the world. We run 30 percent of our business through Muthoot Fincorp branches which have helped us keep labor costs low.

What changes have you made over the years at the company?

Yes, we have had problems before. Our platform is not very good in some parts of the country. One of these things is that our paychecks and salaries will most likely happen in the end. About 27 percent is paid but the rest is personal which we are gradually changing and now 55 percent of our office is given to clients. The reason is that NPAs are in the self-employed single-employee wage category.

Another change we made was that we considered buyers buying cheap homes from developer to developer. So, 16-17% of our total income is already 42-43%. In your area, another advantage is the elimination of traffic from third parties.

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