Annual Report 2012-13 - India Infoline Finance Limited

Business segments
B. Gold loans
35%
₹41.6 bn
Assets under management
Highlights, 2012-13
As on March 31, 2013 gold loans
accounted for 41% of the company’s
consolidated loan book with ` 41.6
bn of assets under management.
The Company added close to 150
branches, taking the total number
to 1,446 across more than 600
locations. As a strategy, we entered
regions through large cities and
gradually penetrated the smaller
ones.
The Company undertook extensive
employee training; it engaged
with leading training groups and
academic institutions for the delivery
of employee training programmes
It implemented ‘Ace’, a transactioncentralised
software.
It strengthened regulatory
compliances, capable of addressing
regulatory changes with ease and
speed.
Overview
The Company entered this space
to address the growing demand for
customers in big as well as semiurban
and rural areas. The company
needs of small businessmen,
vendors, traders, farmers and the
salaried class, who for reasons
of convenience availed of the
Company’s credit facilities rather than
seeking loans from banks.
IIFL implemented various schemes
to suit borrowing requirements. The
of gold jewellery was typically based
content, valued as per centralised
policies and guidelines.
The average loan tenure was four
months with a maximum tenure of
up to 60% of the gold jewellery
value, which adequately protected
the company from gold price
The company’s business was
differentiated on account of
competitive rates and customised
options. The company’s gold loan
branches were situated in high
concentration residential areas,
enhancing customer convenience.
Safety and security
When the company entered this
business, it distinguished itself
through business transparency and
the online availability of relevant
information. Each branch was
provided a minimum of two security
cameras, sensors, panic buttons,
alarm and sensors connected
telephone numbers (including the
number of the nearest police station).
The company maintained a 60-day
CCTV camera recording and a
technology to open the vault in
addition to documenting customer
industry. The company’s branches
are guarded 24x7 and it engaged
the police, army and navy to visit all
branches monthly and undertake
to verify gold purity and personal
discussions). All the company’s
valuers possess more than a year’s
experience.
The company’s gold loan book is
41% of its total lending book, a
sound foundation for growth and
de-risking.
Strategy
The company’s gold loan branches
were positioned as a one-stop
the portfolio of the individual but also
prospective family opportunities.
To reinforce its service standard,
the company embarked on the
implementation of Customer
Relationship Management software.
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| India Infoline Finance Limited