Muthoot Finance is geared up to increase its presence in Andhra Pradesh. The NBFC plans to add 150 branches to its already existing network of 200 in AP. Also, it would be hiring fresh 1000 employees into its workforce. The main focus of the company would be in tapping the rural segment, said its MD, George Alexander Muthoot.

He said that the secured loan segment was growing at a continual steady pace for the company. The company which banks mainly on gold loans has seen a 45 % growth in the segment. The company seems confident in repeating last year's story of about 100% growth in this segment by March 2011.

The loan book of the company is of Rs 11,000 crore and 15% of it is formed by Andhra Pradesh. The company aims to raise it to 20% this fiscal.

"South India is a key market claiming 70 per cent of the loans," Muthoot said.

The bad loans form about 1% of the total gold loans. After the legal notices and other notices are sent to the holder for 18 months, the company auctions the gold which was submitted as collateral.

" The amount realised through the auction is always less than what we had extended as a loan," he said.

"There is a need for a level-playing field for the NBFCs and banks extending gold loans. The risk weight for a Rs 50,000-gold loan for banks is 50 per cent and 100 per cent for NBFCs and as a result the latter need more capital for serving the same loans," he said.

Speaking about banking license, he said that the company is in no rush for the same.