Muthoot Finance is qualified to become a bank: MD | Business Line Amit Mitra George Alexander Muthoot. Hyderabad, June 25: Non-banking finance company Muthoot Finance is unlikely to toe the Mahindra Group line of withdrawing from the race to enter the banking sector. “I see no reason why we should not enter the banking arena. We feel we are the most suited and qualified to become a bank,” George Alexander Muthoot, Managing Director, told Business Line over telephone. The company, which has about 4,200 branches spread across the country, will however take a final call on this by the week-end. Mahindra Finance caused a flutter in the NBFC circles by announcing that it would not apply for a banking licence. Muthoot said the RBI had provided adequate clarifications for conversion of an NBFC into a bank, keeping in mind its overall objective of financial inclusion and last-mile delivery. “About 50 per cent of our branches are in tier II, III and IV cities. And many of them can be immediately converted into a bank. We see no transition issues, as we can stick to the 18-month deadline,” he said. Muthoot expects growth this fiscal to be flat, in the wake of gold prices tumbling. [email protected] (This article was published in the Business Line print edition dated June 26, 2013)
Posted on: Sat, 29 Jun 2013 09:55:25 +0000
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