Latest news with #UmeshMohanan
Time of India
4 days ago
- Business
- Time of India
NPAs in the gold loan sector will not go up due to a surge in gold prices, says Indel's Umesh Mohanan
Synopsis Indel Money's Executive Director, Umesh Mohanan, anticipates no NPA surge in the gold loan sector despite rising gold prices. RBI's revised gold loan guidelines, accommodating stakeholder concerns with LTV relaxations, will benefit small borrowers and sustain NBFC growth. Secured debt funding via NCDs enhances transparency and financial stability for gold loan companies.
Time of India
06-06-2025
- Business
- Time of India
Cos hail RBI move to exempt small-ticket gold loans from stringent appraisal requirements
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Reserve Bank of India's move to exempt small-ticket gold loans from stringent appraisal requirements will go a long way in enhancing credit accessibility for the common man, gold loan companies said. They also said that the RBI 's decision to reduce the repo rate by 50 bps from 6% to 5.50% is expected to boost the overall credit situation in the Muthoot, chairman & managing director of Muthoot FinCorp, said, ' The move to exempt small-ticket gold loans from stringent appraisal requirements addresses a long-standing ask from the sector and will go a long way in enhancing credit accessibility for the common man. We look forward to reviewing the final guidelines in detail."RBI's decision to reduce repo rate by 50 bps from 6% to 5.50% is expected to boost the overall credit situation in the country. The central bank has also reduced the cash reserve ratio (CRR) of banks by 100 basis points, from 4% to 3%. These steps will improve the liquidity condition in the banking system, reduce credit cost, and enhance credit availability. "These measures will also help foster consumption and improve household savings. The overall improvement in the liquidity condition will stimulate economic growth and enhance credit availability, especially in the rural economy and MSME sector, which are badly in need of formal credit," said Umesh Mohanan, executive director & CEO of Indel Money."The likely uptick in consumption will also boost gold loan business and formal credit demand. Further, the RBI's decision to release the final regulation on gold loans is most welcome, as the industry is eagerly waiting for it. It is expected to hike the LTV ratio of small-ticket loans (ie, below Rs 2.5 lakh) to 85% from the current 75%. It is a major boost to all players in the gold loan industry," Mohanan added."Though the health of Scheduled Commercial Banks and NBFCs remains comfortable, and the economy is progressing well, the central bank clearly states that the stress in the microfinance sector is persisting. So, the RBI is not ready to lower its guard on the unsecured lending and credit card receivables. This cautious approach is going to strengthen the formal credit system," he said.
&w=3840&q=100)
Business Standard
28-05-2025
- Business
- Business Standard
Indel Money aims to double AUM to ₹4,000 cr by FY26 on gold loan demand
Gold loan financier Indel Money on Wednesday said it expects to double asset under management (AUM) to Rs 4,000 crore in FY26 helped by rising demand for gold loans. The company's AUM stood at Rs 2,400 crore in the financial year ended in March 2025. Indel Money is aiming to achieve Rs 10,000 crore in disbursements and Rs 4,000 crore in AUM during the current financial year, the company said in a statement. The company opened 89 branches in the fiscal year, taking the total number to 365. It has a presence in 12 states and three Union Territories as of March 31, 2025. The company has also reported a profit of Rs 61 crore for the year, registering a 10 per cent growth year on year, it said. Indel Money reported NPA at 1.35 per cent of its assets, which highlights a significant improvement in asset quality against last year's 3.17 per cent, it said. "The overall credit situation will also improve. As a result, domestic consumption will gather steam in the days to come. Naturally, gold loan demand will also rise, especially in the backdrop of record gold prices," Indel Money CEO Umesh Mohanan said.
Time of India
28-05-2025
- Business
- Time of India
Indel Money reports 52% growth in Assets Under Management and 10% profit increase
Gold-loan non-banking finance company(NBFC) Indel Money announced a 52% year-on-year growth in its Assets Under Management (AUM), bringing the total assets to Rs 2,400 crore on Wednesday. The company has also reported a profit of Rs 61 crore for the year, registering a 10 % growth year on year. Indel Money's reported NPA stands at 1.35% of its assets, which highlights an improvement in asset quality against last year's 3.17%. Gold loans are the mainstay of the company, constituting 94% of the total AUM. The company reported a 69% year-on-year growth in its disbursements in FY25. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo The NBFC is aiming to achieve Rs 10,000-crore disbursements and Rs 4,000 crore in AUM during the current financial year (FY26). The company opened 89 branches in the fiscal year , bringing the total number to 365. It has presence in 12 states and 3 Union territories as of March 31, 2025. Commenting on the development, Indel Money Executive Director and CEO Umesh Mohanan said: 'Despite having a challenging environment, the company has posted a satisfactory full-year result. We are optimistic about the current fiscal year as well, since the interest rates are likely to come down in the coming quarters and economic growth is expected to pick up. The overall credit situation will also improve. As a result, domestic consumption will gather steam in the days to come. Live Events Naturally, gold loan demand will also rise, especially in the backdrop of record gold prices.'
