Manappuram Finance

Seeing the current situation of Fusion microfinanace , I got little worried about MFI division (Asirvad) of Manappuram. I again read the concall and got this…
VP Nandkumar : “Then coming to our leverage, SROs guided us to ensure that our leverage is not promoted. They have said, yes, the maximum income per family to be kept at this thing and maximum lenders to be kept at this. And do you see that if you take our growth compared to some of the peers where the reports were already published, our growth was a little lower during the last quarter.

Whether it is micro finance, or MSME, these are especially people who are exclusive for that from top to bottom. Their underwriting requirement, these are all Secured loan, if you take the MSME, the average ticket size is around INR5 lakhs, INR6 lakhs. So these are used by small businesses – is around 7% only. That means 92%, 93% is collected by nearly presenting the NASH or check. The balance 7% we are collecting. *So around 5%, we have unsecured lending to MSMEs. These are all small ticket lending up to INR3 lakhs, INR4 lakhs. Now we have reduced that further. And we gradually we will reach 97%, 98%. So we have a team for each of these. Our business model is slightly different.

I think Manappuram is currently hold for me. I have already build up my position starting from 89 levels. Eagerly waiting to hear next concall and how it performs.