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Muthoot Finance evaluating options for foraying into the insurance business

18 Feb 2014 Evaluate

Gold loan company Muthoot Finance, which is evaluating options for foraying into the insurance business, is currently on the lookout for a foreign partner in this regard. The company, which has a gold brokerage licence will rope in a foreign partner to launch the insurance business. Further, the company’s initial investment cap stands at Rs 300 crore.

The company is eyeing Rs 25,000 crore loan book and is targeting 9-10% margin by March 31, 2014. Company’s current loan book stands at Rs 22,000 crore and margin at 9.5% as of December 31, 2013.

Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals.

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