Muthoot eyes Rs 100-crore biz from first portfolio mgmt plunge

After roping in Federal Bank's former chairman and mutual fund policymaker KP Padmakumar, Muthoot Group has taken a portfolio plunge. One of South India's largest NBFCs, Muthoot Group expects its Muthoot Securities Ltd's (MSTL) fledgling PMS (portfolio management service) division to log at least Rs 100-crore business, in its very first financial.

"After a soft launch in the Gulf, we are on a drive to whip up the risk-appetite across all classes. Muthoot's USP among other PMS operators is that we offer our services to anyone ready to invest as little as Rs 5 lakh," said George Jacob Muthoot, managing director, MSTL.

Muthoot Group has its eyes on HNIs and retired professionals to give the new portfolio vertical a firm clientele base. Just for PMS, 150 branches have been opened. The group enjoys top drawer clientele on Rs 2,500-crore worth bonds, says PS Sathyan, CEO, MSTL. The 120-year old group has posted Rs 20,000 crore business last year, according to company sources. The net profit has shown 60% growth in the last financial, they said.

The company is upbeat on its PMS marketing since besides using Muthoot's 1400 branches across the country. It has opened PMS counters in its London and Dubai offices, too, to garner NRI investment.

Padmakumar, who sees greenshoots in capital market confidence this year, points out that Adani and NHPC responses have changed the whole perspective about IPOs. "Next in line could be Oil India," he adds.

At the same time, he is also watchful of the market apprehensions. MSTL also categorically says that it will not hesitate "to sit on cash, if the situation so warrants."