The company plans to set up 250 branches by the end of the current financial year, with an investment of Rs 50 crore in these four states.

“A huge potential lies in these states, where gold loans are not as popular as in states in the south, like Kerala and Tamil Nadu, states where we enjoy presence in every Panchayat. We will not be able to immediately reach every Panchayat in these states. However, we would surely reach every large city,” said George Alexander Muthoot, managing director of the company.

The company has opened 600 new branches so far this year.

“Currently, we have over 2,100 branches in south Indian states, primarily Kerala and Tamil Nadu, and 1,200 branches in north India. We want to increase this ratio to 50:50 in a few years from now, Muthoot added.

“There has been a tremendous shift in gold loan business from lower and middle class people to upper class people now. The definition of gold loan has changed from “an option of last resort” to “liquidate unused asset for higher profits”. Hence, more and more upper class customers are joining us customers to avail loan,” Muthoot added.

With an overall loan portfolio of Rs 20,000 crore by the end of September, Muthoot Finance has grown already by 30-35 per cent so far. It aims to grow 60 per cent by the end of this financial year, as against 100 % last year.

“The growth will certainly decline from the current level due to larger base and hence, we are estimating 60 per cent growth for the current financial year,” Muthoot added. The company has been exercising all options to raise funds through initial public offering, non-convertible debentures, internal accruals and private equity to maintain the mandatory capital adequacy ration, he said.

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