Muthoot Fincorp Ltd. partners YES BANK Ltd as Business Correspondent.
Cochin, 03 th February, 2015 :
Cochin, February 03, 2015 – Muthoot Fincorp Limited, the flagship company of Muthoot Pappachan Group (MPG) launched its Business Correspondent operations in the country with YES BANK Ltd., India’s fourth largest private sector bank. The launch is pursuant to the Agreement signed nearly two months back between the two great financial services providers, in sync with RBI’s recent approval on allowing banks to appoint NBFCs (Non-Banking Financial Companies) as Business Correspondents.
With this, Muthoot Fincorp is set to become the country’s first NBFC in the Gold Loan space to act as a Business Correspondent to the Bank. Initially Muthoot Fincorp will roll-out its disbursement of funds for two of YES BANK’s products - a) YES LEAP and b) YES MONEY, from February 03, 2015. YES LEAP (YES Livelihood Enhancement Action Program) is the flagship product of the Inclusive and Social Banking (ISB) division of YES BANK; under this scheme, comprehensive financial services such as Credit, Savings & Insurance to the Self Help Groups will be provided to customers of YES BANK through branches of Muthoot Fincorp. YES MONEY would help to provide seamless Domestic Remittance service to customers at a reasonable fee, through the wide branch networks of Muthoot Fincorp.
Commenting on the launch, Mr. Thomas Muthoot, Executive Director of Muthoot Fincorp Ltd., said, “We are happy to partner with YES BANK and roll-out the new services today from our North Paravur KMK Junction branch, Cochin. Now onwards, we would essentially be enrolling YES BANK customers and enabling their transactions at Muthoot Fincorp branches, besides sourcing various deposit and loan products for the Bank as a Business Facilitator.”
Also speaking on the occasion, Mr. Thomas George Muthoot, Director of Muthoot Fincorp Ltd said, “With this agreement Muthoot Fincorp which is amongst the pioneers of financial inclusion would now take formal financial services across the length and breadth of the country. Our rural penetration and network would help us to create financial awareness and inclusion at the grass root level.”
Mr. Ajay Desai, Senior President and Chief Financial Inclusion Officer, YES BANK Ltd said “With this partnership, we will be able to expand YES LEAP business in Kerala multifold. We have already established a very strong footprint in neighboring Tamilnadu and hope to replicate similar success here”
Mr. Anand Bajaj, President, Innovation & Knowledge Management, YES BANK, who has been part of the team which created YES MONEY program, said that “YES BANK is delighted to have Muthoot Fincorp Ltd. as our Business Correspondent partner in furthering the cause of Digital Financial Inclusion. YES BANK has maintained a pole position in Financial Innovation, especially in the Payments space and would continue to create services which helps the migrants and under/unbanked population. It is important to create transformational use cases for technologies and create eco-system impact.”
About Muthoot Fincorp Muthoot Fincorp Ltd., the flagship company of the 128 years old Muthoot Pappachan Group, is one of the largest NBFCs in India, registered with the Reserve Bank of India. Muthoot Fincorp is a provider of mass finance in the form of gold loans. Decades of dedicated research and experience in rural strongholds have enabled the Company to provide quick and customized finance options and investment schemes for millions of customers who do not have access to mainstream commercial banks. Muthoot Fincorp is amongst the largest Gold Loan companies in India and has an average of 50,000 walk in customers per day. The company has a diverse mix of retail offerings catering to the various needs of its customers including Loan products, Money Transfer, Foreign Exchange, Insurance Services and Wealth Management Services.
Three years back the Company entered the affordable housing finance arena through a subsidiary – Muthoot Housing Finance Company Ltd (MHFL). MHFL caters mainly to the housing finance requirements of customers in the middle and lower income category. The Company offers housing loan, primarily to the people in the unorganised sector to make their dream of owning a home come true. Loan amounts range from Rs 3 lakhs to Rs 15 lakhs, with a loan repayment period up to 15 years and a loan to property value of up to 80%. MHFL offers loans for the purchase of ready property, house/flats under-construction, self-construction on own plot and home extension. The Net worth of Muthoot Fincorp as on 31st March 2014 is Rs. 1249.85 crores and the Capital Adequacy Ratio of the Company is 21.01%.
About YES BANK LIMITED, India’s fourth largest private sector Bank, is the outcome of the professional & entrepreneurial commitment, vision & strategy of its Founder Rana Kapoor and his top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the Future Businesses of India.YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. YES BANK has a knowledge driven approach to banking, and a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving its organizational character as the Professionals’ Bank of India with the uncompromising Vision of “Building the Best Quality Bank of the World in India by 2020!
Muthoot Pappachan Group (MPG), the 128 year old conglomerate has been providing solutions, services and expertise to lakhs of customers across the country in various domains like financial services, automotive, property, hospitality, and alternative energy. Over the years Muthoot Pappachan Group has grown to become a significant entity in the Indian business landscape. Currently it has more than 20000 employees, serving over a million customers. MPG's customer-centric approach and innovation in terms of new products that cater to changing customer needs have helped in winning the loyalty of innumerable customers, as well as attracting new ones. The Group adapts the latest technology and new ways to serve the customers, with an uncompromising stand on values, principles and ethics.
Muthoot Capital Services Ltd. (MCSL) is the first listed entity of Muthoot Pappachan Group. A Non Banking Financial Company (NBFC) listed on the Bombay Stock Exchange, MCSL offers financial solutions including Vehicle Loans (2 wheeler loans). MCSL is presently active in retail financing and caters to the requirements of borrowers both in rural and semi-urban areas. The Company's direct approach helps arrive at solutions that best suit the financial requirements of individuals and small entrepreneurs. The Company being a Deposit Taking Category A NBFC, also accepts deposits from public at attractive rates of interest. The total number of two wheeler and three wheeler loans disbursed by the company so far in the last six years crossed 4,00,000. The company is currently servicing more than 1,500 plus dealerships in seven states with a strong presence in Hero and Honda which together contribute more than 80% of the total business.
The Muthoot Pappachan Group firmly believes that financial inclusion of the economically weaker section of society is important for the socio-economic growth of the country. With that belief MPG launched Muthoot Mahila Mitra (MMM), a micro-finance offering that focuses on empowering women through financial literacy training. Muthoot Mahila Mitra follows the Joint Liability Group (JLG) model of micro-finance. Clients are organized in groups of five to ten women from economically weaker sections of society, living in rural and semi-urban areas or urban slums. Target clients are economically active women with regular cash flow through lawful, sustainable and stable economic activity. Under this program, each individual in a JLG is offered a loan between Rs 10,000 to Rs 15,000 depending on her repayment capacity, for a tenure of 52 weeks. MMM also fosters entrepreneurship skills among women and gives them basic financial literacy.The Group has added to the tourist attractions of Kerala by setting up star hotels run by the Taj and Hilton Groups, Villa Maya the exclusive restaurant and SkyChef the air catering unit, while contribution to Safe and Clean Energy comes in the form of electricity through wind farms and to Technology through the state of the art Muthoot Technopolis.