Muthoot to set up home loan subsidiary

Mumbai:

Kerala-based Muthoot Pappachan Group is all set to form a separate subsidiary in the next fiscal for housing finance, which plans to invest around Rs 100 crore over by 2012.
The group, however, has dropped its earlier plan to apply for a banking licence. The new venture Muthoot Housing Finance would be set up as a wholly-owned subsidiary of Muthoot Fin Corp. The new entity would primarily target the affordable housing segment and aim to disburse small-ticket loans up to Rs 6 lakh.