The outlook on the rating is stable, taking into account the company’s large franchise and strong market position in pawn brokering (gold-backed lending), Fitch said.
At the same time, its rating is constrained by its low profitability, and relatively weak management systems, controls and procedures that require improvements particularly in light of the increased diversity in ETI's business.
The company had a loan portfolio of 1.8 billion rupees at the end of the 2006 financial year, placing it among the medium sized players in the sector.
Portfolio growth was a high 81 percent in the 2006 financial year, compared to 28 percent portfolio growth for registered finance companies.
Pawn brokering makes up 52.4 percent of the ETI’s total por