Muthoot Finance firms up on plans to set up WLATMs

The Muthoot Group plans to set up white label ATMs in tier-3 and tier-4 cities

Shares of Muthoot Finance were up over 2% at Rs 132 after the Muthoot Group announced plans to set up white label automated teller machines across the country.

White Label ATMs (WLAs) are not owned by banks but by private ATM service providers. Customers from any bank can deposit or withdraw money from these; banks pay a service fee for the usage. Muthoot has set up a WLA at its corporate office in New Delhi.

M G George Muthoot, group chairman, said: “With our network of over 4,400 branches in 21 states & four Union Territories, we will strategically set up WLAs in semi-urban and rural areas.”
 

The rollout will be mainly in tier-3 and tier-4 cities. The company aims to set up 9,000 WLAs over three years – 1,000 in the first year, 2,000 in the second year and 6,000 in the third.