it is a ppt on muthoot finance co. ( Banking & Insurance)

1. SUBJECT TEACHER : MRS. SURBHI BHOJANIA

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

5. 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

8. Founder of Muthoot
finance Ltd.
Late Mr. M. George
Muthoot

11. 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

12. 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





13. 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

14. 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


15. 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

16.  Such as :
 PAN CARD SERVICE
 INSURANCE

17.  SHARE
TRADING
 GOLD COINS

18. FROM ALL THE
ABOVE SERVICES
MUTHOOT FINANCE
MAINLY FOCUS ON
PROVIDING
GOLD
LOANS

20. GEOGRAPHICAL DISTRIBUTION OF
GEOGRAPHICAL DISTRIBUTION OF
MUTHOOT FINANCE IN TERMS OF GOLD
LOAN IN INDIA
LOAN IN INDIA

21. 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.

22. 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

23. 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

24. 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%

25. 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%

26. 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

27. 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

28. 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.

29. 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.

30. 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.

31.  CRISIL has assigned a CRISIL IPO
grade of ‘4/5’ (pronounced "four on
five") to the proposed IPO of
Muthoot Finance Ltd (Muthoot
Finance).

32. SURV EY PIC TURES