ppt on Muthoot finance

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ppt on Muthoot finance

  1. 1. SUBJECT TEACHER : MRS. SURBHI BHOJANIA
  2. 2. TOPIC NO. NAME Roll No. 1. 2. 3. 4. 5. 6. VIKAS BANGERA ASHWINI JAGTAP NISHAD VIJAYKUMAR VRUJESH SHARMA SALVIUS SUKUMARAN ROHIT SINGH 03 13 23 33 43 53
  3. 3. Company Market Cap (Rs. in Cr.) P/E P/BV EV/EBIDT (TTM) (TTM A (x) (x) (x) ROE ROCE D/E (%) (%) (x) I D F C 20,013.66 13.30 1.65 8.73 13.9 14.1 2.44 Bajaj Finserv 13,030.60 175.22 9.02 80.93 5.4 7.6 0.00 Muthoot Finance 11,560.86 15.23 1.69 4.72 41.9 54.6 2.09 Vatsa Corpn 10,250.98 0.00 1.35 0.00 0.0 0.0 0.00 Reliance Capital 8,374.75 16.13 0.76 7.39 5.7 13.5 1.19 M & M Financial 8,131.24 11.98 2.75 7.23 22.8 18.5 2.90 7,664.98 89.40 2.29 80.10 2.8 4.0 0.00 Indiabulls Fin. 6,497.92 8.83 1.52 4.99 17.2 16.6 2.45 India Securities 4,926.38 0.00 57.40 0.00 0.0 0.0 1.78 Bajaj Fin. 4,584.56 7.08 24.0 21.4 2.73 L&T Fin.Holdings 10.09 2.25
  4. 4. Founder of Muthoot finance Ltd. Late Mr. M. George Muthoot
  5. 5. ABOUT GOLD LOAN  Key features of Gold Loan:  Loan disbursal in 5 minutes  Loans starts from  1,500 to  1 Crore  Minimal documentation and credit assessment requirements  Evaluation of gold ornaments takes place in house.  Safety of Gold Ornaments: All branches as equipped with Strong Rooms for keeping safe custody of Gold Ornaments  Gold Loan available at over 3,000 Muthoot Finance branches across India  0% processing fees
  6. 6. ABOUT MONEY TRANSFER  Muthoot Money Transfer allows real time money transfers from across the seas, with the money reaching the receiver in less than 10 minutes.   The key highlights of this service are: Fastest Money Transfer facility No bank account needed for amounts up to Rs. 50,000 The receiver does not have to pay any service charge Certified by the RBI    
  7. 7. ABOUT FOREIGN EXCHANGE  Muthoot foreign exchange service. with the wide network of almost 3000 branches  A few features of their Foreign Exchange service:  Buying and selling of all major Traveller’s cheques and Travel Cards  Commission free encashment of Traveller’s cheques  Competitive rates for all currencies  Remittance of funds abroad for various purposes
  8. 8. ABOUT MPOWER CARD Access it anywhere in India  Earn Loyalty Points on every transaction at ANY Muthoot branch  Redeem these Loyalty Points for attractive gifts  Get Rs. 20 per gram extra on Gold Loan  Keep all your jewelry in our lockers free of cost (No locker charges!)  Rs. 50,000 Personal Accident Insurance coverage  Special overdraft scheme for MPower Cardholder 
  9. 9. ABOUT TRAVELSMART Within just a few months of its launch Muthoot Travelsmart has already become one of the leading IATA (International Air Transport Association) The services offered under Travelsmart include:  International Ticketing  Railway & Domestic Ticketing  Tours  Passport,  Travel Emigration & Visa Insurance
  10. 10.  Such as :  PAN CARD SERVICE  INSURANCE
  11. 11.  SHARE TRADING  GOLD COINS
  12. 12. FROM ALL THE ABOVE SERVICES MUTHOOT FINANCE MAINLY FOCUS ON PROVIDING GOLD LOANS
  13. 13. GEOGRAPHICAL DISTRIBUTION OF GEOGRAPHICAL DISTRIBUTION OF MUTHOOT FINANCE IN TERMS OF GOLD LOAN IN INDIA LOAN IN INDIA
  14. 14. REASON FOR MORE SUCCESS IN SOUTH REGIONS  Very first reason is that the founder of muthoot finance ltd. is from south india region.  The southern region of India accounts for 85-90% of the Gold Loans market in India.  Major reason for success is that ‘ the 70% of its branch network positioned in Southern region itself.
  15. 15. Particulars 1.Availability of security 2.Possession of collateral 3.Ease of Liquidation 4.Sentimental value 5.Ease of Valuation 6.Loan suitability for small ticket size Gold Loan in comparison with other loans Home Share Gold Automobil Unsecure loans pledging loans e loans d loans
  16. 16. ADVANTAGES OF GOLD LOANS No income and salary requirements Even if you have a bad credit history and low income level Low interest rates Pay only the interest Convenience Emotional attachment Less processing time
  17. 17. Interest Rate structure* Loan Scheme Express 3 Minutes Gold Loan - Daily Interest Scheme (Available in Kerala only) Annual Interest Rate (on diminishing balance) 24% Express 3 Minutes Gold Loan - Weekly interest remittance (Outside Kerala) 24 % / 27% ( as per the applicable scheme ) Smart+ Gold Loan (EMI Scheme) 24% Traders Flexi Gold Loan 24%
  18. 18. ON FIXED INCOME GOLD BOND Monthly Interest Scheme Existing Put option waiver General Period 91 Days 6 Months 12 Months 12 Months 400 Days 400 Days 18 Months 18 Months 24 Months 24 Months 30 Months 30 Months 36 Months 36 Months 60 Months 60 Months 10% 10.50% 11.50% 11.50% 12.00% 12.00% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 11.50% 11.50% Special Category 10.50% 11.00% 12.00% 12.00% 12.50% 12.50% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 12.00% 12.00% Revised with effect from 21.05.2012 Put option Genera Special waiver l Category Period 12 months 11.50% 12.00% and 1 day 400 Days 400 Days 18 Months 18 Months 24 Months 24 Months 30 Months 30 Months 36 Months 36 Months 60 Months 60 Months 12.00% 12.00% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 11.50% 11.50% 12.50% 12.50% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 13.00% 12.00% 12.00%
  19. 19. Annual Interest Scheme Existing Revised with effect from 21.05.2012 Put option General Special Put option General Special waiver Period Category waiver Category Period 12 Months 12% 12 Months 12.50% 12.00% 12.50% and 1 day 400 Days 12.50% 13.00% 400 days 12.50% 13.00% 18 Months 13.00% 13.50% 18 Months 13.00% 13.50% 24 Months 13.00% 13.50% 24 Months 13.00% 13.50% 30 Months 13.00% 13.50% 30 Months 13.00% 13.50% 36 Months 13.00% 13.50% 36 Months 13.00% 13.50% 60 Months 12.00% 12.50% 60 Months 12.00% 12.50% Muthoot Doubling Plus Bond Muthoot Doubling Plus Bond Maturity value of Rs.1000 Maturity value of Rs.1000 Period Period 66 months 2080 66 months 2080 Effective Yield* (p.a.) Effective Yield* (p.a.) 19.63 19.63
  20. 20. SWOT ANALYSIS OF MUTHOOT FINANCE STRENGTHS  Market leading position in the Gold Loan business with a strong presence in under-served rural and semi-urban markets  Strong capital raising ability  Geographic diversification will aid in business scalability OPPORTUNITIES  The gold loans market is significantly under-penetrated and is expected to continue growing at the rate of 35-40% in the future.  Changing customer attitude and life style WEAKNESSES  Gold loan business constituted 98.5% of revenues. So any major decline in gold prices in future can adversely impact the company’s revenue.  RBI removed the 'priority sector lending' status to gold loans for the agriculture purpose. THREATS  Rising interest rate scenario  There are about 7,000 litigation cases against the company.  Increased competition from other NBFCs and banks in gold financing business
  21. 21. GOLD LOAN RELATED QUESTIONS WITH ANSWERS I. What documents do I need to produce? Original proof of identification. Any of the following are acceptable: • Passport • Govt of India election ID card with address proof • PAN card with address proof • Driver's licence • Any Govt departmental ID card • We are bound by and follow KYC norms as per the II. regulator's guidelines. How is the loan amount calculated? •The loan amount is calculated based on the weight of gold. The upper ceilings are prescribed by the RBI. III. Will the loan amount be given to me in cash immediately? •Yes, the loan amount will be paid in cash across the counter.
  22. 22. IV. What is the percentage of interest charged and are there any service charges that I have to pay? The current rate is 24% per annum on diminishing balance. Nonservicing of interest at agreed intervals will attract additional default interest.       Service charges are:Upto Rs 5000/Rs 5/Rs 5001/ to Rs 10000/Rs 10/Rs 10001/- to Rs 20000/- Rs 20/Rs 20001/- to Rs 50000/- Rs 40/Above Rs 50000/Rs 75/- V. Is it a flat rate of interest that I have to pay? The interest is charged on the outstanding balance of the loan. VI. Do I get an account number? Yes, we will be giving a loyalty number which you can produce each time you avail a loan. Thereby you are exempted from paying the service charge from the second transaction on.
  23. 23. VII. What is the amount received if I pledge 1 gram of gold? •The minimum weight accepted for pledging is 2 grams and the minimum loan amount is Rs 500/VIII. I am a regular gold loan customer of Muthoot Finance Ltd. Can I shift to Smart + gold loan scheme? •Existing customers under regular gold loan scheme can shift to Smart gold loan scheme by transferring the balance payable to Smart + gold loan scheme. IX. How is the repayment of loan done? Is there an EMI calculated? •There is no fixed EMI and therefore you can remit any amount at any time to reduce your interest burden. X. Will I be informed if my loan becomes overdue? •Yes, you will be informed of the same by notice on the address given.
  24. 24.  CRISIL has assigned a CRISIL IPO grade of ‘4/5’ (pronounced "four on five") to the proposed IPO of Muthoot Finance Ltd (Muthoot Finance).
  25. 25. SURV EY PIC TURES

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