SUBJECT TEACHER : - SUBJECT TEACHER : - Mrs. SURBHI Mrs. SURBHI BHOJANIABHOJANIA

TOPICTOPIC

NO.NO. NAMENAME Roll Roll No.No.

VIKAS BANGERAVIKAS BANGERAASHWINI JAGTAPASHWINI JAGTAP

NISHAD VIJAYKUMARNISHAD VIJAYKUMARVRUJESH SHARMAVRUJESH SHARMA

SALVIUS SUKUMARAN SALVIUS SUKUMARAN ROHIT SINGHROHIT SINGH

1.1.2.2.3.3.4.4.5.5.6.6.

030313132323333343435353

CompanyCompanyMarket CapMarket Cap(Rs. in Cr.)(Rs. in Cr.)

P/E P/E (TTM)(TTM)

(x)(x)

P/BV P/BV (TTM(TTM

(x)(x)

EV/EBIDTAEV/EBIDTA(x)(x)

ROEROE(%)(%)

ROCEROCE(%)(%)

D/ED/E(x)(x)

I D F C 20,013.6620,013.66 13.3013.30 1.651.65 8.738.73 13.913.9 14.114.1 2.442.44

Bajaj FinservBajaj Finserv 13,030.6013,030.60 175.22175.22 9.029.02 80.9380.93 5.45.4 7.67.6 0.000.00

Muthoot FinanceMuthoot Finance 11,560.8611,560.86 15.2315.23 1.691.69 4.724.72 41.941.9 54.654.6 2.092.09

Vatsa CorpnVatsa Corpn 10,250.9810,250.98 0.000.00 1.351.35 0.000.00 0.00.0 0.00.0 0.000.00

Reliance CapitalReliance Capital 8,374.758,374.75 16.1316.13 0.760.76 7.397.39 5.75.7 13.513.5 1.191.19

M & M FinancialM & M Financial 8,131.248,131.24 11.9811.98 2.752.75 7.237.23 22.822.8 18.518.5 2.902.90

L&T Fin.HoldingsL&T Fin.Holdings 7,664.987,664.98 89.4089.40 2.292.29 80.1080.10 2.82.8 4.04.0 0.000.00

Indiabulls Fin.Indiabulls Fin. 6,497.926,497.92 8.838.83 1.521.52 4.994.99 17.217.2 16.616.6 2.452.45

India SecuritiesIndia Securities 4,926.384,926.38 0.000.00 57.4057.40 0.000.00 0.00.0 0.00.0 1.781.78

Bajaj Fin.Bajaj Fin. 4,584.564,584.56 10.0910.09 2.252.25 7.087.08 24.024.0 21.421.4 2.732.73

Founder of Muthoot Founder of Muthoot finance Ltd.finance Ltd.

Late Mr. M. George MuthootLate Mr. M. George Muthoot

ABOUT GOLD LOANABOUT GOLD LOAN Key features of Gold Loan:Key features of Gold Loan: Loan disbursal in 5 minutesLoan disbursal in 5 minutes Loans starts from  1,500 to  1 CroreLoans starts from  1,500 to  1 Crore Minimal documentation and credit Minimal documentation and credit

assessment requirementsassessment requirements Evaluation of gold ornaments takes place in Evaluation of gold ornaments takes place in

house.house. Safety of Gold Ornaments: All branches as Safety of Gold Ornaments: All branches as

equipped with Strong Rooms for keeping equipped with Strong Rooms for keeping safe custody of Gold Ornamentssafe custody of Gold Ornaments

Gold Loan available at over 3,000 Muthoot Gold Loan available at over 3,000 Muthoot Finance branches across IndiaFinance branches across India

0% processing fees0% processing fees

ABOUT MONEY TRANSFERABOUT MONEY TRANSFER Muthoot Money Transfer allows real Muthoot Money Transfer allows real

time money transfers from across time money transfers from across the seas, with the money reaching the seas, with the money reaching the receiver in less than 10 the receiver in less than 10 minutes. minutes. 

The key highlights of this service The key highlights of this service are:are:

Fastest Money Transfer facilityFastest Money Transfer facility No bank account needed for No bank account needed for

amounts up to Rs. 50,000amounts up to Rs. 50,000 The receiver does not have to pay The receiver does not have to pay

any service chargeany service charge Certified by the RBICertified by the RBI

ABOUT FOREIGN EXCHANGE ABOUT FOREIGN EXCHANGE

Muthoot foreign exchange service. Muthoot foreign exchange service. with the wide network of almost 3000 with the wide network of almost 3000 branchesbranches

A few features of their Foreign A few features of their Foreign Exchange service:Exchange service:

Buying and selling of all major Buying and selling of all major Traveller’s cheques and Travel CardsTraveller’s cheques and Travel Cards

Commission free encashment of Commission free encashment of Traveller’s chequesTraveller’s cheques

Competitive rates for all currenciesCompetitive rates for all currencies Remittance of funds abroad for various Remittance of funds abroad for various

purposespurposes

Access it anywhere in IndiaAccess it anywhere in India Earn Loyalty Points on every transaction at Earn Loyalty Points on every transaction at

ANY Muthoot branchANY Muthoot branch Redeem these Loyalty Points for attractive Redeem these Loyalty Points for attractive

giftsgifts Get Rs. 20 per gram extra on Gold LoanGet Rs. 20 per gram extra on Gold Loan Keep all your jewelry in our lockers free of Keep all your jewelry in our lockers free of

cost (No locker charges!)cost (No locker charges!) Rs. 50,000 Personal Accident Insurance Rs. 50,000 Personal Accident Insurance

coveragecoverage Special overdraft scheme for MPower Special overdraft scheme for MPower

CardholderCardholder

ABOUT M-POWER ABOUT M-POWER CARDCARD

ABOUT TRAVELSMARTABOUT TRAVELSMARTWithin just a few months of its launch MuthootWithin just a few months of its launch Muthoot

Travelsmart has already become one of the leading Travelsmart has already become one of the leading IATA (International Air Transport Association)IATA (International Air Transport Association)

The services offered under Travelsmart include:

International & Domestic TicketingInternational & Domestic TicketingRailway TicketingRailway TicketingToursToursPassport, Emigration & VisaPassport, Emigration & VisaTravel InsuranceTravel Insurance

Such as :Such as : PAN CARD SERVICEPAN CARD SERVICE INSURANCEINSURANCE

SHARESHARE TRADINGTRADING GOLD COINSGOLD COINS

FROM ALL THE ABOVE FROM ALL THE ABOVE SERVICES MUTHOOT SERVICES MUTHOOT

FINANCE MAINLY FINANCE MAINLY FOCUS ON FOCUS ON

PROVIDINGPROVIDING

GOLD GOLD LOANS LOANS

GEOGRAPHICAL DISTRIBUTION OF GEOGRAPHICAL DISTRIBUTION OF MUTHOOT FINANCE IN TERMS OF GOLD MUTHOOT FINANCE IN TERMS OF GOLD

LOAN IN INDIALOAN IN INDIA

GEOGRAPHICAL DISTRIBUTION OF GEOGRAPHICAL DISTRIBUTION OF MUTHOOT FINANCE IN TERMS OF GOLD MUTHOOT FINANCE IN TERMS OF GOLD

LOAN IN INDIALOAN IN INDIA

REASON FOR MORE SUCCESS REASON FOR MORE SUCCESS IN SOUTH REGIONSIN SOUTH REGIONS

Very first reason is that the founder of muthoot Very first reason is that the founder of muthoot finance ltd. is from south india region.finance ltd. is from south india region.

The southern region of India accounts for 85-90% of The southern region of India accounts for 85-90% of the Gold Loans the Gold Loans market in India.market in India.

Major reason for success is that ‘ the Major reason for success is that ‘ the 70% of its 70% of its branch network positioned in Southern region itself.branch network positioned in Southern region itself.

ParticularsParticulars HomeHomeloansloans

ShareSharepledginpledgin

gg

Gold Gold loansloans

AutomobAutomobileile

loansloans

UnsecureUnsecuredd

loansloans

1.Availability of1.Availability ofsecuritysecurity2.Possession of2.Possession ofcollateralcollateral3.Ease of3.Ease ofLiquidationLiquidation4.Sentimental 4.Sentimental valuevalue5.Ease of 5.Ease of Valuation Valuation 6.Loan 6.Loan suitability for suitability for small ticket sizesmall ticket size7.Knowledge for7.Knowledge forcreditworthinesscreditworthinessof customerof customer

Gold Loan Gold Loan in comparison in comparison with other loanswith other loans

ADVANTAGES OF GOLD LOANSADVANTAGES OF GOLD LOANS

No income and salary No income and salary requirementsrequirements

Even if you have a bad credit Even if you have a bad credit history and low income levelhistory and low income level

Low interest ratesLow interest ratesPay only the interestPay only the interestConvenienceConvenienceEmotional attachmentEmotional attachmentLess processing timeLess processing time

Loan SchemeLoan Scheme Annual Interest RateAnnual Interest Rate(on diminishing balance)(on diminishing balance)

Express 3 Minutes Gold Loan - Daily Interest Express 3 Minutes Gold Loan - Daily Interest SchemeScheme

(Available in Kerala only) (Available in Kerala only)

24%24%

Express 3 Minutes Gold Loan - Weekly Express 3 Minutes Gold Loan - Weekly interest remittanceinterest remittance(Outside Kerala) (Outside Kerala)

24 % / 27%24 % / 27%( as per the applicable ( as per the applicable

scheme ) scheme )

Smart+ Gold Loan (EMI Scheme)Smart+ Gold Loan (EMI Scheme) 24%24%

Traders Flexi Gold LoanTraders Flexi Gold Loan 24%24%

Interest Rate structure*Interest Rate structure*

ON FIXED INCOME GOLD BONDON FIXED INCOME GOLD BOND

Monthly Interest Scheme Existing Revised with effect from

21.05.2012

Put option waiver Period

General Special Category

Put option waiver Period

Genera l

Special Category

91 Days 10% 10.50% 12 months and 1 day

11.50%

12.00% 6 Months 10.50% 11.00%

12 Months 11.50% 12.00% 400 Days 12.00% 12.50% 400 Days 12.00% 12.50% 18 Months 12.50% 13.00% 18 Months 12.50% 13.00% 24 Months 12.50% 13.00% 24 Months 12.50% 13.00% 30 Months 12.50% 13.00% 30 Months 12.50% 13.00% 36 Months 12.50% 13.00% 36 Months 12.50% 13.00% 60 Months 11.50% 12.00% 60 Months 11.50% 12.00%

Monthly Interest Scheme Existing Revised with effect from

21.05.2012

Put option waiver Period

General Special Category

Put option waiver Period

Genera l

Special Category

91 Days 10% 10.50% 12 months and 1 day

11.50%

12.00% 6 Months 10.50% 11.00%

12 Months 11.50% 12.00% 400 Days 12.00% 12.50% 400 Days 12.00% 12.50% 18 Months 12.50% 13.00% 18 Months 12.50% 13.00% 24 Months 12.50% 13.00% 24 Months 12.50% 13.00% 30 Months 12.50% 13.00% 30 Months 12.50% 13.00% 36 Months 12.50% 13.00% 36 Months 12.50% 13.00% 60 Months 11.50% 12.00% 60 Months 11.50% 12.00%

Annual Interest Scheme

Existing Revised with effect from 21.05.2012 Put option

waiver Period General Special

Category Put option waiver Period

General Special Category

12 Months 12% 12.50%

12 Months and 1 day

12.00%

12.50%

400 Days 12.50% 13.00% 400 days 12.50% 13.00% 18 Months 13.00% 13.50% 18 Months 13.00% 13.50% 24 Months 13.00% 13.50% 24 Months 13.00% 13.50% 30 Months 13.00% 13.50% 30 Months 13.00% 13.50% 36 Months 13.00% 13.50% 36 Months 13.00% 13.50% 60 Months 12.00% 12.50% 60 Months 12.00% 12.50%

Annual Interest Scheme

Existing Revised with effect from 21.05.2012 Put option

waiver Period General Special

Category Put option waiver Period

General Special Category

12 Months 12% 12.50%

12 Months and 1 day

12.00%

12.50%

400 Days 12.50% 13.00% 400 days 12.50% 13.00% 18 Months 13.00% 13.50% 18 Months 13.00% 13.50% 24 Months 13.00% 13.50% 24 Months 13.00% 13.50% 30 Months 13.00% 13.50% 30 Months 13.00% 13.50% 36 Months 13.00% 13.50% 36 Months 13.00% 13.50% 60 Months 12.00% 12.50% 60 Months 12.00% 12.50%

Muthoot Doubling Plus Bond Period

Maturity value of Rs.1000 Effective Yield* (p.a.)

66 months 2080 19.63

Muthoot Doubling Plus Bond Period

Maturity value of Rs.1000 Effective Yield* (p.a.)

66 months 2080 19.63

SWOT ANALYSIS OF MUTHOOT SWOT ANALYSIS OF MUTHOOT FINANCEFINANCE

STRENGTHS STRENGTHS WEAKNESSESWEAKNESSES

OPPORTUNITIES OPPORTUNITIES THREATSTHREATS

Market leading position in the Market leading position in the Gold Loan business with a Gold Loan business with a strong presence in under-strong presence in under-served rural and semi-urban served rural and semi-urban marketsmarkets Strong capital raising abilityStrong capital raising ability

Geographic diversification will Geographic diversification will aid in business scalabilityaid in business scalability

Gold loan business constituted Gold loan business constituted 98.5% of revenues. So any 98.5% of revenues. So any major decline in gold prices in major decline in gold prices in future can adversely impact future can adversely impact the company’s revenue.the company’s revenue. RBI removed the 'priority RBI removed the 'priority sector lending' status to gold sector lending' status to gold loans for the agriculture loans for the agriculture purpose. purpose.

The gold loans market is The gold loans market is significantly under-penetrated significantly under-penetrated and is expected to continue and is expected to continue growing at the rate of 35-40% growing at the rate of 35-40% in the future.in the future. Changing customer attitude Changing customer attitude and life styleand life style

Rising interest rate scenarioRising interest rate scenario There are about 7,000 There are about 7,000

litigation cases against the litigation cases against the company.company. Increased competition from Increased competition from other NBFCs and banks in gold other NBFCs and banks in gold financing businessfinancing business

GOLD LOAN RELATED GOLD LOAN RELATED QUESTIONSQUESTIONS WITHWITH

ANSWERSANSWERSI.I. What documents do I need to produce?What documents do I need to produce?Original proof of identification. Any of the following are Original proof of identification. Any of the following are

acceptable:acceptable: PassportPassport Govt of India election ID card with address proofGovt of India election ID card with address proof PAN card with address proofPAN card with address proof Driver's licenceDriver's licence Any Govt departmental ID cardAny Govt departmental ID card We are bound by and follow KYC norms as per the We are bound by and follow KYC norms as per the

regulator's guidelines.regulator's guidelines.II. II. How is the loan amount calculated?How is the loan amount calculated?•The loan amount is calculated based on the weight of The loan amount is calculated based on the weight of gold. The upper ceilings are prescribed by the RBI.gold. The upper ceilings are prescribed by the RBI.

III. Will the loan amount be given to me in cash III. Will the loan amount be given to me in cash immediately?immediately?•Yes, the loan amount will be paid in cash across the Yes, the loan amount will be paid in cash across the counter.counter.

IV. What is the percentage of interest charged and are there IV. What is the percentage of interest charged and are there any service charges that I have to pay?any service charges that I have to pay?The current rate is 24% per annum on diminishing balance. The current rate is 24% per annum on diminishing balance. Non-servicing of interest at agreed intervals will attract Non-servicing of interest at agreed intervals will attract additional default interest.additional default interest.

Service charges are:- Service charges are:- Upto Rs 5000/-Upto Rs 5000/- Rs 5/-Rs 5/- Rs 5001/ to Rs 10000/-Rs 5001/ to Rs 10000/- Rs 10/-Rs 10/- Rs 10001/- to Rs 20000/-Rs 10001/- to Rs 20000/- Rs 20/-Rs 20/- Rs 20001/- to Rs 50000/-Rs 20001/- to Rs 50000/- Rs 40/-Rs 40/- Above Rs 50000/-Above Rs 50000/- Rs 75/-Rs 75/-

V. Is it a flat rate of interest that I have to pay?V. Is it a flat rate of interest that I have to pay?The interest is charged on the outstanding balance of the The interest is charged on the outstanding balance of the loan. loan.

VI. Do I get an account number?VI. Do I get an account number?Yes, we will be giving a loyalty number which you can Yes, we will be giving a loyalty number which you can produce each time you avail a loan. Thereby you are produce each time you avail a loan. Thereby you are exempted from paying the service charge from the second exempted from paying the service charge from the second transaction on.transaction on.

VII. What is the amount received if I pledge 1 gram of VII. What is the amount received if I pledge 1 gram of gold?gold?•The minimum weight accepted for pledging is 2 grams The minimum weight accepted for pledging is 2 grams and the minimum loan amount is Rs 500/-and the minimum loan amount is Rs 500/-

VIII. I am a regular gold loan customer of Muthoot VIII. I am a regular gold loan customer of Muthoot Finance Ltd. Can I shift to Smart + gold loan scheme?Finance Ltd. Can I shift to Smart + gold loan scheme?•Existing customers under regular gold loan scheme Existing customers under regular gold loan scheme can shift to Smart gold loan scheme by transferring the can shift to Smart gold loan scheme by transferring the balance payable to Smart + gold loan scheme.balance payable to Smart + gold loan scheme.

IX. How is the repayment of loan done? Is there an EMI IX. How is the repayment of loan done? Is there an EMI calculated?calculated?•There is no fixed EMI and therefore you can remit any There is no fixed EMI and therefore you can remit any amount at any time to reduce your interest burden.amount at any time to reduce your interest burden.

X. Will I be informed if my loan becomes overdue? X. Will I be informed if my loan becomes overdue? •Yes, you will be informed of the same by notice on the Yes, you will be informed of the same by notice on the address given.address given.

CRISIL has assigned a CRISIL CRISIL has assigned a CRISIL IPO grade of IPO grade of ‘4/5’ ‘4/5’ (pronounced (pronounced "four on five") to the proposed "four on five") to the proposed IPO of Muthoot Finance Ltd IPO of Muthoot Finance Ltd (Muthoot Finance).(Muthoot Finance).

SURVSURVEYEY PICPICTURESTURES