Microfinance performance is phenomenal but the standalone performance have been poor again this quarter. Gold loans at 18,614 crore against 19,190 crore last quarter which is a degrowth of -3 %. its even worse compared with same quarter last year with degrowth of -9 %. As per the investor presentation they are facing intense competition in the gold loans. Most likely by next quarter IIFL will topple manappuram as the second biggest gold lender. IIFL gold loans stands at 18,284 crores this quarter which is increase of 3 % quarter on quarter and + 25 % compared to last year.
As per manappuram management they want to prioritise yields over growth which stands at 22.5 % this quarter for gold loans. IIFL gold yield stands at 17.8% and it looks to me that IIFL is growing at the cost of manappuram.
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