Manappuram Finance Ltd, the gold loan-focused NBFC, plans to open 500-550 new branches during FY27 to strengthen its gold loan business amid favourable regulatory changes and rising consumer demand.
Chairman and Managing Director V.P. Nandakumar said during earnings call that gold loans continue to remain the key growth driver, while the microfinance business is still in a recovery phase with modest assets under management growth and gradual improvement in asset quality.
He said the company expects steady momentum in gold loans supported by strong consumer demand and emerging opportunities in MSME-focused lending products.
Gold loan focus
According to him, recent regulatory changes allowing differentiated products such as consumption loans and income-generating gold loans targeted at MSMEs are expected to create additional growth opportunities.
He said removal of prior regulatory approval requirements for opening new branches would help accelerate expansion plans.
Locations with strong growth potential have already been identified for the proposed 500-550 new branches during the current financial year.
The diversified portfolio is expected to support balanced and resilient growth despite near-term challenges in certain segments.
Cautious on microfinance
The company continues to remain cautious on the microfinance business, aligning expansion plans with improvements in collections and borrower leverage.
The housing finance business remains stable, though portfolio growth continues to be muted.
Focus remains on maintaining asset quality, operational efficiency and risk-adjusted growth across businesses.
FY27 priorities
The company plans to strengthen leadership in gold loans through scale expansion, technology adoption and customer-centric initiatives.
Plans are also underway to accelerate stabilisation of microfinance and other micro-lending businesses with emphasis on improving asset quality.
The company intends to maintain balance sheet strength through disciplined capital and liquidity management while enhancing operational efficiency through digital adoption and analytics.
Nandakumar said the company remains confident about the long-term structural opportunity in secured lending, particularly gold loans, supported by its strong brand and extensive distribution network.