Mr. M G Muthoot, the Chairman of Muthoot Group has indicated that the group might consider entering the banking sector but pointed out that convert Muthoot Finance Ltd into a bank even if it is allowed under the regulatory framework.

Mr. Alexander George Muthoot, Director, Muthoot Group said that group will evaluate the option to enter the banking sector if it is in line with the existing lines of business of the group. Mr. M. G. George Muthoot said that group will only consider opening a separate bank.

Mr. M. G. George Muthoot also pointed out that the Muthoot Finance is aiming to increase its assets under management by 10 per cent during the financial year. It is also working on a plan to open 300-400 branches during this financial year taking the total network to 4,500 branches. The company had only 37 branches in 1993 and has recorded phenomenal growth since then.

The average size of each loan from the company is Rs 35,000 and about 60 per cent of the loans are less than Rs 1 lakh. About 70 per cent of the new branches are in semi-urban and rural areas and the new branches are also expected to come in these areas.