The standalone net profit of the gold financing company grew 59% to Rs 841 crore for the quarter under review, against Rs 530 crore for the year-ago period.
NBFC Muthoot Finance on Wednesday reported a 52% increase in its first quarter consolidated net profit at Rs 858 crore, compared to Rs 563 crore in the first quarter of the previous fiscal. The Kerala-based finance company, which also operates home loan, microfinance and insurance broking subsidiaries, said consolidated loan assets under management achieved a year-on-year increase of 16% to Rs 46,501 crore during the quarter, against last year’s Rs 40,228 crore.
The standalone net profit of the gold financing company grew 59% to Rs 841 crore for the quarter under review, against Rs 530 crore for the year-ago period. Loan assets registered a year-on-year growth of 15% to Rs 41,296 crore, compared with Rs 35,816 crore in the same period last year. However, sequentially, loan assets decreased by Rs 315 crore on account of closure of branches during April due to pan-India lockdown in the wake of Covid-19 pandemic.
George Alexander Muthoot, managing director, said, “Our disbursements during the quarter were lower on account of closure of branches in April due to nationwide lockdown. Once the branches opened, we saw higher level of repayments than disbursements, probably on account of restrictions in movement of people. However, we witnessed a significant increase in disbursements since June which continues in July and August 2020.”
“As initially guided, we are looking forward to achieve a 15% growth in gold loan portfolio for FY 21. The company also maintained a liquidity buffer of Rs 8,477 crore as cash, bank and investments in liquid funds as on June 30, 2020. The non-gold loan portfolio in subsidiaries constituted about 12% of consolidated loan portfolio. Collections in the non-gold loan portfolio have significantly improved month on month. Additional Covid ECL provisions to the extent of Rs 32 crore were made for non-gold loan portfolio in the quarter,” he added.