Muthoot Finance net slips 13% to Rs 867 cr | The Financial Express

Muthoot Finance net slips 13% to Rs 867 cr

Total income fell 12% to Rs 2,504 crore, against Rs 2,833 crore in the year-ago period. Loan assets increased 4% to Rs 57,230 crore compared to 55,147 crore.

Muthoot Finance net slips 13% to Rs 867 cr
Return on average loan assets stood at 6.09%, compared to 7.38%, while return on average equity was at 18.47%, compared to 25.04%.

Kochi-based gold loan major Muthoot Finance on Thursday reported a 13% decline in its net profit to Rs 867 crore for the second quarter of FY23, compared with Rs 994 crore in the corresponding quarter of last fiscal. The company registered an 8% growth in net profit QoQ, from Rs 802 crore in Q1.

Total income fell 12% to Rs 2,504 crore, against Rs 2,833 crore in the year-ago period. Loan assets increased 4% to Rs 57,230 crore compared to 55,147 crore.

George Alexander Muthoot, MD, said: “Our gold loan AUM stood at Rs 56,501crore, registering a Y-o-Y growth of 3% and a marginal Q-o-Q growth.  Though we were able to migrate teaser loans to higher rates, the full impact of the transformation will take a few more quarters to reflect. Despite the rising interest rate scenario, we were able to maintain our borrowing cost at 7.98% for Q2FY23.”

Also Read: Punjab & Sind Bank must pace itself on credit growth: MD

Return on average loan assets stood at 6.09%, compared to 7.38%, while return on average equity was at 18.47%, compared to 25.04%.

“In the coming quarters, we expect the borrowing cost to remain in that range mainly due to the positive impact on account of retirement of ECB amounting to $450 million in October 2022 which carried a high cost,”  Muthoot said.

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First published on: 11-11-2022 at 04:00 IST