There is a whole parallel economy.
Small to big, all kinds of people who don’t pay taxes, evade or circumvent, have cash stashed or converted to gold jewellery.
Now, this is a huge population. All dealings is cash. Cash in cash out. And when they need money, for an expense, like house renovation, marriage etc, where do they go?
Fruit, sabji walas, food stalls, cleaners, daily wage workers… And even small scale businesses like haircutting salons, shops etc.
NBFCs is where they go.
Deposit gold get the money. Simple.
Therefore, a dip in numbers that Muthoot saw this quarter doesn’t worry me. There is a huge population who needs their services.
Besides Muthoot is only 66K Mcap. Long way to go. Plenty of headroom. It is a market leader.
Growing branches every year.
| Subscribe To Our Free Newsletter |
