Kerala-based Manappuram Finance, a major name in gold-based loans, is expecting to grow its non-gold loan book. This is being done to reduce concentration risk from gold loans. The Reserve Bank of India also wants large companies to diversify their portfolio, as a single business will lead to this risk.
The non-gold loan book consists of financing for small and medium enterprises, commercial vehicle loans, and affordable housing. It is 12-13 percent of the total loan book. The aim of the company is to raise this non-gold loan business to about 25 percent of its total business in the next two years.
Manappuram Finance is a non-deposit taking NBFC and having a strong presence in South India in states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh.
