KOCHI:
The Association of Gold Loan Companies India and Association of Non- Banking Finance Companies Kerala express their deepest concern on the continuous reports of disruption being caused to the normal functioning of the branches of Muthoot Finance in parts of Kerala.
We strongly condemn reports of continuous strikes being organised in the branches, branches not being allowed to open, manhandling of branch staffs and many other cases of Mischief, fake news being spread to further vested interests. In these challenging times when the whole industry is going through tough times owing to national and international factors, these incidents are greatly hampering the goodwill we have created and increasing confusion in the minds of the customer resulting in loss for all the involved parties.
Our financial sector is huge and is not only comprised of banks, but also non banking financial companies who offer a wide variety of financial services, loans against secured collateral like gold etc, un-secured loans, two-wheeler loan, housing loans, trade loans for small time traders.
Our NBFCs may be smaller players when compared to a scheduled bank and may go un noticed but we are very important to the economy especially when 60 percent of our population still lives in rural areas. In addition to the branch led model we have also been pioneers in the supporting financial inclusion by working at the ground level specialising in micro credit. Our income generating loans have benefitted more than 18 lakh families helping them supplement their incomes and upgrading their business skills.
All our member companies have been at the forefront of providing last mile financial services to the common man. Even though many of our member companies started as small organisations they have grown on to become some of the largest organisations in the country contributing immensely to the growth story of India. This has been possible through consistent efforts, clear business practices and placing utmost importance to customer service. The association can strongly confirm that all its member companies are being strictly regulated by various regulatory bodies like RBI, SEBI, IRDAI etc with regular audits of its business practices and the same being confirmed with the respective board of directors. It is due to these regulatory commitments and strong business practices; Gold Loan companies are one of the least impacted companies in the current market situations
As an association we have been at the forefront of promoting a greater sector wide benchmarking wherein our employee benefits are at par with that of the best of the industry. As a result of which many of our member organisations have come up with options like Quarterly incentive plans for the employees, performance linked pay-out plans, Employee stock options etc.
Even though many of our member companies have grown and spread their business to other parts of the country they still share a deep bond and love with Kerala. This is clear from the fact that Kerala is home to the head offices of India’s top 3 Gold Loan finance companies and boasts having a large percentage of their branches. In Kerala alone our member companies serve more than 75,000 customers walking into their branches. Our member companies are one of the largest employers in the state by providing direct employment to more than 14,000 people with a considerably large number of women employees working close to their home branches.
The association strongly recommends sense to prevail in the current charged atmosphere and the branches be allowed to function in a normal manner. We also call upon the state government to explore all pathways to send out a positive message to all the other industries operating in the state and find a permanent solution to the labour problems being faced by the industry.
