The gold loan lender said that declining cost of capital and better collections have helped the company grow from Rs 297 crore as reported in the same quarter a year ago.
Muthoot Finance on Wednesday reported a 53% year-on-year increase in net profit for the three months to September at Rs 454 crore. The gold loan lender said that declining cost of capital and better collections have helped the company grow from Rs 297 crore as reported in the same quarter a year ago. The finance company which also operates a home loan, microfinance and insurance broking subsidiaries said that consolidated profit has gone up substantially while gold loan AUM has come down marginally.Sequentially, the net profit has increased by 29% from Rs 351 crore as reported in the June quarter. Loan assets stood at Rs 27,608 crore during the quarter under review as against Rs 27,852 crore recorded during the June quarter, a marginal decline of 1 %, while year-on-year it increased by 1% from Rs 27,456 crore.
Speaking on the occasion George Alexander Muthoot, managing director said, “The rise in NPA accounts in Muthoot Finance is mainly on account of more time given to customers for repayment on our shorter tenor loans of 6 months which became NPA faster than our conventional loan tenor of 12 months. Company has also increased standard asset provision to 1.25% higher than the regulatory requirement of 0.35%”.
Number of loan accounts for the first half of the current fiscal stood at 75 lakh, an increase of 4% from 72 lakh accounts in the comparable period of last fiscal. Gold pledged for the first half stood at 152 tonne as against 149 tonnes in the year-ago period. “Our subsidiaries have again shown an excellent performance. Muthoot Homefin (India) has grown its loan portfolio by Rs 389 crore for the half year reaching Rs 830 crore. The microfinance subsidiary which has a strong SHG model increased its loan portfolio by 38% during the half year reaching Rs 797 crore.
The NBFC in Sri Lanka increased its loan portfolio by 10% during the half year. First year premium collections in the insurance broking subsidiary increased by 28% at Rs 29 crore,” George Alexander Muthoot said.