ppt on Muthoot finance

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

1. SUBJECT TEACHER : - SUBJECT TEACHER : -
MRS. SURBHI BHOJANIAMRS. SURBHI BHOJANIA

2. TOPICTOPIC
NO.NO.
NAMENAME
Roll Roll
No.No.
VIKAS BANGERAVIKAS BANGERA
ASHWINI JAGTAPASHWINI JAGTAP
NISHAD VIJAYKUMARNISHAD VIJAYKUMAR
VRUJESH SHARMAVRUJESH SHARMA
SALVIUS SUKUMARAN SALVIUS SUKUMARAN
ROHIT SINGHROHIT SINGH
1.1.
2.2.
3.3.
4.4.
5.5.
6.6.
0303
1313
2323
3333
4343
5353

5. CompanyCompany
Market CapMarket Cap
(Rs. in Cr.)(Rs. in Cr.)
P/E P/E
(TTM)(TTM)
(x)(x)
P/BV P/BV
(TTM(TTM
(x)(x)
EV/EBIDTEV/EBIDT
AA
(x)(x)
ROEROE
(%)(%)
ROCEROCE
(%)(%)
D/ED/E
(x)(x)
I D F CI D F C 20,013.6620,013.66 13.3013.30 1.651.65 8.738.73 13.913.9 14.114.1 2.442.44
Bajaj FinservBajaj Finserv 13,030.6013,030.60 175.22175.22 9.029.02 80.9380.93 5.45.4 7.67.60.000.00
Muthoot FinanceMuthoot Finance 11,560.8611,560.86 15.2315.23 1.691.69 4.724.72 41.941.9 54.654.6 2.092.09
Vatsa CorpnVatsa Corpn 10,250.9810,250.98 0.000.00 1.351.35 0.000.00 0.00.0 0.00.00.000.00
Reliance CapitalReliance Capital 8,374.758,374.75 16.1316.13 0.760.76 7.397.39 5.75.7 13.513.5 1.191.19
M & M FinancialM & M Financial 8,131.248,131.24 11.9811.98 2.752.75 7.237.23 22.822.8 18.518.5 2.902.90
L&T L&T
Fin.HoldingsFin.Holdings
7,664.987,664.98 89.4089.40 2.292.29 80.1080.10 2.82.8 4.04.00.000.00
Indiabulls Fin.Indiabulls Fin. 6,497.926,497.92 8.838.83 1.521.52 4.994.99 17.217.2 16.616.6 2.452.45
India SecuritiesIndia Securities 4,926.384,926.38 0.000.0057.4057.40 0.000.00 0.00.0 0.00.01.781.78
Bajaj Fin.Bajaj Fin. 4,584.564,584.56 10.0910.09 2.252.25 7.087.08 24.024.0 21.421.4 2.732.73

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

11. ABOUT GOLD LOANABOUT GOLD LOAN
Key features of Gold Loan:Key features of Gold Loan:
Loan disbursal in 5 minutesLoan disbursal in 5 minutes
Loans starts from  1,500 to  1 CroreLoans starts from  1,500 to  1 Crore
Minimal documentation and credit Minimal documentation and credit
assessment requirementsassessment requirements
Evaluation of gold ornaments takes Evaluation of gold ornaments takes
place in house.place in house.
Safety of Gold Ornaments: All branches Safety of Gold Ornaments: All branches
as equipped with Strong Rooms for as equipped with Strong Rooms for
keeping safe custody of Gold keeping safe custody of Gold
OrnamentsOrnaments
Gold Loan available at over 3,000 Gold Loan available at over 3,000
Muthoot Finance branches across IndiaMuthoot Finance branches across India
0% processing fees0% processing fees

12. ABOUT MONEY ABOUT MONEY
TRANSFERTRANSFER
Muthoot Money Transfer allows real Muthoot Money Transfer allows real
time money transfers from across the time money transfers from across the
seas, with the money reaching the seas, with the money reaching the
receiver in less than 10 minutes. receiver in less than 10 minutes. 
The key highlights of this service are:The key highlights of this service are:
Fastest Money Transfer facilityFastest Money Transfer facility
No bank account needed for amounts No bank account needed for amounts
up to Rs. 50,000up to Rs. 50,000
The receiver does not have to pay any The receiver does not have to pay any
service chargeservice charge
Certified by the RBICertified by the RBI

13. ABOUT FOREIGN ABOUT FOREIGN
EXCHANGE EXCHANGE
Muthoot foreign exchange service. Muthoot foreign exchange service.
with the wide network of almost 3000 with the wide network of almost 3000
branchesbranches
A few features of their Foreign A few features of their Foreign
Exchange service:Exchange service:
Buying and selling of all major Buying and selling of all major
Traveller’s cheques and Travel CardsTraveller’s cheques and Travel Cards
Commission free encashment of Commission free encashment of
Traveller’s chequesTraveller’s cheques
Competitive rates for all currenciesCompetitive rates for all currencies
Remittance of funds abroad for Remittance of funds abroad for
various purposesvarious purposes

14. Access it anywhere in IndiaAccess it anywhere in India
Earn Loyalty Points on every transaction Earn Loyalty Points on every transaction
at ANY Muthoot branchat ANY Muthoot branch
Redeem these Loyalty Points for Redeem these Loyalty Points for
attractive giftsattractive gifts
Get Rs. 20 per gram extra on Gold LoanGet Rs. 20 per gram extra on Gold Loan
Keep all your jewelry in our lockers free Keep all your jewelry in our lockers free
of cost (No locker charges!)of cost (No locker charges!)
Rs. 50,000 Personal Accident Insurance Rs. 50,000 Personal Accident Insurance
coveragecoverage
Special overdraft scheme for MPower Special overdraft scheme for MPower
CardholderCardholder
ABOUT M-ABOUT M-
POWER CARDPOWER CARD

15. ABOUT ABOUT
TRAVELSMARTTRAVELSMART
Within just a few months of its launch MuthootWithin just a few months of its launch Muthoot
Travelsmart has already become one of the leading Travelsmart has already become one of the leading
IATA (International Air Transport Association)IATA (International Air Transport Association)
The services offered under
Travelsmart include:
International & Domestic International & Domestic
TicketingTicketing
Railway TicketingRailway Ticketing
ToursTours
Passport, Emigration & VisaPassport, Emigration & Visa
Travel InsuranceTravel Insurance

16. Such as :Such as :
PAN CARD SERVICEPAN CARD SERVICE INSURANCEINSURANCE

17. SHARESHARE
TRADINGTRADING
GOLD COINSGOLD COINS

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

20. T O P T I C 1 . 2 3 C 4 5 6 2 0 o I 2 m p o 2 P a 5 P n 5
T O P T I C 1 . 2 3 C 4 5 6 2 0 o I 2 m p o 2 P a 5 P n 5
y p o . P P o 5 n 2 a C a 3 O 5 2 a 5 o O I y 0 5 P n 5 T P 4 6 5
y p o . P P o 5 n 2 a C a 3 O 5 2 a 5 o O I y 0 5 P n 5 T P 4 6 5
4 P C a 5 2 a 5 2 a 6 2 C
4 P C a 5 2 a 5 2 a 6 2 C GEOGRAPHICAL DISTRIBUTION OF GEOGRAPHICAL DISTRIBUTION OF
MUTHOOT FINANCE IN TERMS OF GOLD MUTHOOT FINANCE IN TERMS OF GOLD
LOAN IN INDIALOAN IN INDIA

21. REASON FOR MORE REASON FOR MORE
SUCCESS IN SOUTH SUCCESS IN SOUTH
REGIONSREGIONS
Very first reason is that the founder of muthoot Very first reason is that the founder of muthoot
finance ltd. is from south india region.finance ltd. is from south india region.
The southern region of India accounts for 85-90% The southern region of India accounts for 85-90%
of the Gold Loans of the Gold Loans market in India.market in India.
Major reason for success is that ‘ the Major reason for success is that ‘ the 70% of its 70% of its
branch network positioned in Southern region branch network positioned in Southern region
itself.itself.

22. ParticularsParticulars HomeHome
loansloans
ShareShare
pledgingpledging
Gold Gold
loansloans
AutomobilAutomobil
ee
loansloans
UnsecureUnsecure
dd
loansloans
1.Availability of1.Availability of
securitysecurity
2.Possession of2.Possession of
collateralcollateral
3.Ease of3.Ease of
LiquidationLiquidation
4.Sentimental 4.Sentimental
valuevalue
5.Ease of 5.Ease of
Valuation Valuation
6.Loan suitability 6.Loan suitability
for small ticket for small ticket
sizesize
7.Knowledge for7.Knowledge for
creditworthinesscreditworthiness
of customerof customer
Gold Loan Gold Loan in in
comparison comparison with other with other
loansloans

23. ADVANTAGES OF GOLD ADVANTAGES OF GOLD
LOANSLOANS
No income and salary No income and salary
requirementsrequirements
Even if you have a bad credit Even if you have a bad credit
history and low income levelhistory and low income level
Low interest ratesLow interest rates
Pay only the interestPay only the interest
ConvenienceConvenience
Emotional attachmentEmotional attachment
Less processing timeLess processing time

24. Loan SchemeLoan Scheme Annual Interest RateAnnual Interest Rate
(on diminishing balance)(on diminishing balance)
Express 3 Minutes Gold Loan - Daily Interest Express 3 Minutes Gold Loan - Daily Interest
SchemeScheme
(Available in Kerala only) (Available in Kerala only)
24%24%
Express 3 Minutes Gold Loan - Weekly interest Express 3 Minutes Gold Loan - Weekly interest
remittanceremittance
(Outside Kerala) (Outside Kerala)
24 % / 27%24 % / 27%
( as per the applicable ( as per the applicable
scheme ) scheme )
Smart+ Gold Loan (EMI Scheme)Smart+ Gold Loan (EMI Scheme) 24%24%
Traders Flexi Gold LoanTraders Flexi Gold Loan 24%24%
Interest Rate structure*Interest Rate structure*

25. ON FIXED INCOME GOLD BONDON FIXED INCOME GOLD BONDT O PIC 1 . 2 3 PI45 4 6 I20 o C4 m 4 T
p a n 6 I n P y T M 4 r n 6 4k 2 e n IC 2 4 t t 4oI 2 t 5 O m T
( R si R s ( T
O P I T C 1 I . C 2 T 3 4 . 5 60 T
O60 . C o T
m 6 2 60 4 p T a 1 6 n . 4 p T
y4 I 6 M C 0r T
O P I T C 1 I . C 2 T
3 4 .5 6 0 T
O 60 . C o T
m 6 2 604 T
p T
a 1 6 n . 4 p T
y4 I 6 M C 0r T
k e T t 4 r T e(R T e( s i( R T
T
e ) T / C2 IE T
4 2 o T e T o 4r T
T
T
ee s i( R T
T
T
e) s (( R Tx T B C 2 I E T e( s i( R T ee s (( R T
e ) T B C 2 IE T ee s i( R T e) s (( R T
V ( ( T t 4 r T e) s (( R T e) s i( R T V ( ( T t 4 r T e) s (( R T e) s i( R T
e D T B C 2 IE T e) s i( R T eA s (( R T e D T B C 2 IE T e) s i( R T eA s (( R T
) V T B C 2 IE T e) s i( R T eA s (( R T ) V T B C 2 IE T e) s i( R T eA s (( R T
A ( T B C 2 IE T e) s i( R T eA s (( R T A ( T B C 2 IE T e) s i( R T eA s (( R T
A x T B C 2 IE T e) s i( R T eA s (( R T A x T B C 2 IE T e) s i( R T eA s (( R T
x ( T B C 2 IE T ee s i( R T e) s (( R T x ( T B C 2 IE T ee s i( R T e) s (( R T
T
Monthly Interest Scheme
Existing Revised with effect from
21.05.2012
Put option waiver
Period
General Special
Category
Put option
waiver
Period
Genera
l
Special
Category
91 Days 10% 10.50%

12 months
and 1 day


11.50%


12.00% 6 Months 10.50% 11.00%
12 Months 11.50% 12.00%
400 Days 12.00% 12.50% 400 Days 12.00% 12.50%
18 Months 12.50% 13.00% 18 Months 12.50% 13.00%
24 Months 12.50% 13.00% 24 Months 12.50% 13.00%
30 Months 12.50% 13.00% 30 Months 12.50% 13.00%
36 Months 12.50% 13.00% 36 Months 12.50% 13.00%
60 Months 11.50% 12.00% 60 Months 11.50% 12.00%

26. ) PP/E1 2 3 PI4 5 4 6 I2 0 o C 4 m 4 T
p a n 6 I n P y T M 4 r n 6 4k 2 en I C 2 4tt4oI2 t 5 O m 2 ( R s i R s ( T
O P I T C 1 I . C 2 T
3 4 .5 6 0TO60 .C o T
m 6 2 60 4 p T a 1 6 n . 4 p T
y4 I 6 M C 0r T
O P I T C 1 I . C 2 T
3 4 .5 6 0 T
O60 . C o T
m 6 2 60 4 p T a 1 6 n . 4 p T
y4 I 6 M C 0r T
e ) T B C 2 IE T e)R T
T
e) s i( R T
e ) T B C 2 IE T
4 2 o T e T o 4r T
T
e) s (( R T
T
e) s i( R T
V ( ( T t 4 r T e) s i( R T eA s (( R T V ( ( T o 4 r T e) s i( R T eA s (( R T
e D T B C 2 IE T eA s (( R T eA s i( R T e D T B C 2 IE T eA s (( R T eA s i( R T
) V T B C 2 IE T eA s (( R T eA s i( R T ) V T B C 2 IE T eA s (( R T eA s i( R T
A ( T B C 2 IE T eA s (( R T eA s i( R T A ( T B C 2 IE T eA s (( R T eA s i( R T
A x T B C 2 IE T eA s (( R T eA s i( R T A x T B C 2 IE T eA s (( R T eA s i( R T
x ( T B C 2 IE T e) s (( R T e) s i( R T x ( T B C 2 IE T e) s (( R T e) s i( R T
T Annual Interest Scheme
Existing Revised with effect from 21.05.2012
Put option
waiver Period
General Special
Category
Put option
waiver
Period
General Special
Category
12 Months 12%

12.50%
12 Months
and 1 day

12.00%

12.50%
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%
T /I C O O I2 x O / B 1 n Py 2 V 1 / 6 2 DO P k
T
T
T
T
V 45 n O k T
T E I/ 5 n I. 2 r E1 /4 2 O t2 M 6 R ( s s s T ptt4o I n r 42 A n 4 1 k% 2 F, R E R8 T
x x T / C2 IE T ) (D ( T e k s x A T
T
Muthoot Doubling Plus Bond



Period
Maturity value of Rs.1000 Effective Yield* (p.a.)
66 months 2080 19.63

27. SWOT ANALYSIS OF MUTHOOT SWOT ANALYSIS OF MUTHOOT
FINANCEFINANCE
STRENGTHS STRENGTHS WEAKNESSESWEAKNESSES
OPPORTUNITIES OPPORTUNITIES THREATSTHREATS
Market leading position in the Market leading position in the
Gold Loan business with a strong Gold Loan business with a strong
presence in under-served rural presence in under-served rural
and semi-urban marketsand semi-urban markets
Strong capital raising abilityStrong capital raising ability
Geographic diversification will aid Geographic diversification will aid
in business scalabilityin business scalability
Gold loan business constituted Gold loan business constituted
98.5% of revenues. So any major 98.5% of revenues. So any major
decline in gold prices in future decline in gold prices in future
can adversely impact the can adversely impact the
company’s revenue.company’s revenue.
RBI removed the 'priority sector RBI removed the 'priority sector
lending' status to gold loans for lending' status to gold loans for
the agriculture purpose. the agriculture purpose.
The gold loans market is The gold loans market is
significantly under-penetrated significantly under-penetrated
and is expected to continue and is expected to continue
growing at the rate of 35-40% in growing at the rate of 35-40% in
the future.the future.
Changing customer attitude and Changing customer attitude and
life stylelife style
Rising interest rate scenarioRising interest rate scenario
There are about 7,000 litigation There are about 7,000 litigation
cases against the company.cases against the company.
Increased competition from other Increased competition from other
NBFCs and banks in gold NBFCs and banks in gold
financing businessfinancing business

28. GOLD LOAN RELATED GOLD LOAN RELATED
QUESTIONSQUESTIONS WITHWITH
ANSWERSANSWERS
I.I.What documents do I need to produce?What documents do I need to produce?
Original proof of identification. Any of the following are Original proof of identification. Any of the following are
acceptable:acceptable:
·
PassportPassport
·
Govt of India election ID card with address proofGovt of India election ID card with address proof
·
PAN card with address proofPAN card with address proof
·
Driver's licenceDriver's licence
·
Any Govt departmental ID cardAny Govt departmental ID card
·
We are bound by and follow KYC norms as per the We are bound by and follow KYC norms as per the
regulator's guidelines.regulator's guidelines.
II. II. How is the loan amount calculated?How is the loan amount calculated?
•The loan amount is calculated based on the weight of gold. The loan amount is calculated based on the weight of gold.
The upper ceilings are prescribed by the RBI.The upper ceilings are prescribed by the RBI.
III. Will the loan amount be given to me in cash immediately?III. Will the loan amount be given to me in cash immediately?
•Yes, the loan amount will be paid in cash across the counter.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 IV. What is the percentage of interest charged and are there any
service charges that I have to pay?service charges that I have to pay?
The current rate is 24% per annum on diminishing balance. Non-The current rate is 24% per annum on diminishing balance. Non-
servicing of interest at agreed intervals will attract additional servicing of interest at agreed intervals will attract additional
default interest.default interest.
 Service charges are:- Service charges are:-
 Upto Rs 5000/-Upto Rs 5000/- Rs 5/-Rs 5/-
 Rs 5001/ to Rs 10000/-Rs 5001/ to Rs 10000/- Rs 10/-Rs 10/-
 Rs 10001/- to Rs 20000/-Rs 10001/- to Rs 20000/- Rs 20/-Rs 20/-
 Rs 20001/- to Rs 50000/-Rs 20001/- to Rs 50000/- Rs 40/-Rs 40/-
 Above Rs 50000/-Above Rs 50000/- Rs 75/-Rs 75/-
V. Is it a flat rate of interest that I have to pay?V. Is it a flat rate of interest that I have to pay?
The interest is charged on the outstanding balance of the loan. The interest is charged on the outstanding balance of the loan.
VI. Do I get an account number?VI. Do I get an account number?
Yes, we will be giving a loyalty number which you can produce Yes, we will be giving a loyalty number which you can produce
each time you avail a loan. Thereby you are exempted from each time you avail a loan. Thereby you are exempted from
paying the service charge from the second transaction on.paying the service charge from the second transaction on.

30. VII. What is the amount received if I pledge 1 gram of gold?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 weight accepted for pledging is 2 grams and
the minimum loan amount is Rs 500/-the minimum loan amount is Rs 500/-
VIII. I am a regular gold loan customer of Muthoot Finance VIII. I am a regular gold loan customer of Muthoot Finance
Ltd. Can I shift to Smart + gold loan scheme?Ltd. Can I shift to Smart + gold loan scheme?
•Existing customers under regular gold loan scheme can Existing customers under regular gold loan scheme can
shift to Smart gold loan scheme by transferring the balance shift to Smart gold loan scheme by transferring the balance
payable to Smart + gold loan scheme.payable to Smart + gold loan scheme.
IX. How is the repayment of loan done? Is there an EMI IX. How is the repayment of loan done? Is there an EMI
calculated?calculated?
•There is no fixed EMI and therefore you can remit any There is no fixed EMI and therefore you can remit any
amount at any time to reduce your interest burden.amount at any time to reduce your interest burden.
X. Will I be informed if my loan becomes overdue? X. Will I be informed if my loan becomes overdue?
•Yes, you will be informed of the same by notice on the Yes, you will be informed of the same by notice on the
address given.address given.

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

32. SURVSURVEYEY PICPICTURESTURES