Manappuram Finance, a gold loan NBFC, feels that its disbursements this fiscal will not be impacted by the rising prices of the yellow metal.

“We use a technology-based risk management system and periodic assessment of loan to security value,” Mr Raghu Mohan, Joint General Manager (Treasury) of the company, said.

Currently, gold loans account for hardly 10 per cent of the estimated gold stocks in Indian households, which has been pegged at 18,000 tonnes. In terms of value, gold loans account for 1.2 per cent of the value of total gold stocks.

Mannapuram's gold holdings increased from 13 tonnes in 2009 to 53 tonnes in 2011. Its gold loan portfolio as on March 31, comprising over two million gold loan accounts with 1.19 million customers, aggregating to Rs 6,370 crore of gold loans in principal amount.

The company, which is raising up to Rs 750 crore through a public issue of secured redeemable non-convertible debentures opening on August 18, plans to increase the number of its branches by about 300 this fiscal. “Today about 86 per cent of our loan portfolio is in South India. We plan to sharpen our focus in the northern markets,” Mr Mohan said.

He said the company will be foraying into travel and tourism business this fiscal. He was not willing to disclose its plans in this regard.

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