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CNBC TV18 Bazaar Mr. Oommen Mammen CFO, Muthoot Finance

pCNBC TV18 Bazaar Mr.

CNBC TV18 Bazaar Mr. Oommen Mammen CFO, Muthoot Finance

Oommen Mammen CFO, Muthoot Financep pa bit but heres one company thats been doing well gold finance major without finance has entered the mutual fund space acquiring IDBI which will fund a human business for 215 crows omen moment see a fourth without finance joins us now good morning miss Robin thanks much well you know this is an extremely competitive space where do you expect to make over here from the mutual fund space see fi 21 what can I contribute to you later so infinity mutual fund space the decision was taken by the board some time back and we have any principle of home from the city also for settingfield mutual fund in between we saw this opportunity we thought of putting our fate and finally we have entered into a definitive agreement entering into this space is not purely from a profit and no if you compare with the profits of MU to finance mm close plus and now the profits coming from this activity will be very less but look at the customer base we have will be in with about customers per day now these customers their investment habits are changing their recurrence thats a team so unless we offer something which is meeting their requirements probably they may look at other opportunities so that is where we are coming from so no meeting the customers expectation is the main driver for entering into this space no so far we have been already done an opportunity to invest within who the furnace now you know will not theyre in time money in moto finance eight cities now we need to offer other requirements the generation is changing so they have other requirements so we have what focus infantilizes know doing bold on business as well as the in city business now we intend to offer each different products two branches for our customers thats an object less okay so the profits will be very less but can you give us any guidelines on you know what the AUM growth could look like I know its very early days yet but what kind of growth are you looking at over the next one to two years see no no the naturally you say it should be a fiveyear project now its too early to come and anything on that we just entered into a shape what is a key demand now I know we need to comply no complete other regulatory formalities now we need to sit with the team there is an independent board which is therefore the MC so we need to chart out our plans its too early to comment but you know in the next five years it should do well that is our expectation of good finance board how does this four times I think you paid four percent right it was a five thousand three hundred crore AUM for IDBI mutual fund you paid 15 crore so you were paying 4 no Im not would not like to comment as a percentage of the a year so we took the total call on the business and we agreed on a valuation they know several aspects including operational team etc so will the IDBI Bank Network continue to distribute these mutual fund schemes I mean how will it really work between the two of you so there is no definite commitment on the distribution of the products by the eBay that I think to my understanding a debate distributes Notley of high degree which will fund the NC products other IMC products also they are distributing so soap only once we accurate we may have to negotiate with them for a fresh arrangement otherwise there is no definite commitment from Heidi way back okay well I since you are with us I wanted to ask you about the Catholic Syrian bank as well CSB is now entering the market they are huge in gold one third of the book is gold and now as you know as a listed bank its possible that theyre going to get cheaper finance will that be big competition for motored finance when you have to undercut to offer lower rates my understanding says we have mostly metal in kerala yes now traditionally they have been doing business in Kerala because of various reasons I know they have the operational expertise within kerala now to scale it up like i know outside it becomes a big challenge in terms of bullion gold own business outside having something which we need to see of course it takes a time and the more important thing is that its not the lending rate which is critical for this business it is mostly the operational expertise which we find of banks are not able to manage it okay so you know i mean what will go it will it be very competitive as far as the cost of funds are concerned between the mutual fund itself and banks i mean i looking at maybe some losses or you know I dont know maybe not being as competitive in the first two years just so that you can increase penetration see calamitous profit making about a decent the equity area so certainly that can be launchpad for us to build additional a we need to keep our practice to build additional volumes so no I think if we cut it to remain as making for some time getting larger volumes is something that we need to look at each evening or annex five years okay or if you leave it at that thank you very much mr.

CNBC TV18 Bazaar Mr. Oommen Mammen CFO, Muthoot Finance

Norman for joining us with some preliminary observations on how you will take the I the mutual fund business forward without finance one of those NBF C which is not really dependent on getting money from banks both for gold loans and for AMC business maybe we should put a oneyear of the stock not quite the monopod and variety but still both would finance yeah has a very strong performance to speak about of itself Wow okay so not at all your traditional NB FC lets take a look at the financials the reported by the truthful ads in the past first week of interest income up for you thats a good growth through a steady good performance and then we come to the profit of tax okay thats the bad performance remember this is fi nineteen a half year of the current ear is also over thats assets under management thats gone up very still lets now talk about the market and well once again the market is rewarding those who bought the dips and ignored everything else 63 points higher now on the niftyp

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