Capri Global Capital rose 1.29% to Rs 597.05 after the company said it aims to build Rs 8000 crore gold loan book in the next five years.
Capri Global Capital (CGCL) said it plans to enter the gold loan business and it will launch this business in the first half of the financial year 2022-23.The company aims to build a gold loan book size of Rs 8,000 crore and expand its network with 1500 branch locations over the next five years.
The company has appointed Ravish Gupta to head the business vertical. He is entrusted with the responsibility of driving the new gold loan business across the country. He brings two decades of experience. Prior to joining CGCL, he headed the north zone of the gold loan business for India Infoline Finance, the company said in a statement.
CGCL is a non-banking financial company (NBFC). It operates in two major verticals - secured MSME Loans and Affordable Housing Finance - through its strong network of 110 branches spread across 11 states & Union Territories. The company is also engaged in providing construction finance to affordable housing projects and distributes auto loan products of leading banks.
As of 31 December 2021, the company has reported its highest ever consolidated net profit of Rs 64.9 crore with assets under management (AUM) of Rs 5769.3 crore.
Rajesh Sharma, managing director, Capri Global Capital said, "This is in line with our long-term expansion strategy. We see immense scope in the gold loan market as financial distress due to the pandemic has increased demand for credit across low-to-medium income households. Due to the emotional value associated with gold, people pledge their gold as collateral and secure a short-term loan rather than selling it. The trend is very evident in the rural and semi-urban geographies of the country. CGCL with increased rural presence is well poised to serve customers and further financial inclusion within the communities."
CGCL's consolidated net profit rose 32.05% to Rs 64.89 crore on 32.49% increase in total income to Rs 253.78 crore in Q3 December 2021 over Q3 December 2020. Profit before tax (PBT) rose 32.40% year-on-year to Rs 86.07 crore in Q3 December 2021.
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