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Margadarsi Chit Fundsurpasses Rs 10,000 crore turnover in FY 2017-18

Fund has achieved a business turnover of Rs 10,204 crore in fiscal 2017-18.

Updated: 20-06-2018 15:46 IST

Margadarsi Chit Fund has achieved a business turnover of Rs 10,204 crore in fiscal 2017-18 and has set a target to achieve Rs 20,000 crore turnover by 2025, its Managing Director Sailaja Kiron said here today.

"We have done turnover of Rs 10,204 crore in FY 2017-18. For current fiscal (2018-19) the company has set a target of Rs 10,800 crore turnover and is hopeful of exceeding Rs 11,000 crore," Sailaja told reporters here.

The company, established in 1962 with its first branch in Himyatnagar here, now has 105 branches in Telangana, Andhra Pradesh, Tamil Nadu and Karnataka. Asked if the company planned to foray into the banking sector, she said "No...Maybe we will think about an NBFC...and not a bank. We are just contemplating on it (NBFC) and it is in the initial stage. Nothing has been formalised."

To a query on Goods and Services Tax on chit funds,Sailaja said the chit fund industry has been seeking its complete removal and added that the levy of 12 per cent was too high. "It would be much better if GST is removed. It will be a boon to our subscribers. We definitely want it removed. They treated us badly...others (financial institutions) don't have GST on their interest and incomes. '

Representations have been given to the government and we will continue to pursue", she said. The company has chit values starting from Rs 50,000 to Rs 80 lakh and is contemplating commencing Rs one crore chits in the future, Sailaja said, adding that they planned to set up five to six more branches this year.

"We want to remain a South India based company,"she said. She said the average return on chit investment was six to eight per cent per annum, depending on the chit group. "Enrollments are scrutinised very thoroughly to ensure our default rate is very low and our recovery is 99 per cent," Sailaja added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)