Gold loan NBFC Muthoot Finance on Wednesday announced a 40.28% year-on-year increase in standalone net profit for the three months ending March to Rs 451.38 crore.
Gold loan NBFC Muthoot Finance on Wednesday announced a 40.28% year-on-year increase in standalone net profit for the three months ending March to Rs 451.38 crore. Net profit during the last quarter of FY17 stood at Rs 321.77 crore, and during the third quarter of FY18, it stood at Rs 464 crore. The Kerala based company reported that reduction in the cost of funds and better collection helped in the performance.
The board of directors of Muthoot Finance Limited also decided to raise funds up to Rs 6,000 crore through public issues of redeemable non-convertible debentures to be issued in one or more tranches. For the complete fiscal, the NBFC registered an increase in net profit of 46% at Rs 1,720 crore for FY18 as against Rs 1,180 crore in the previous year. Loan assets stood at Rs 29,138 crore as on March 31, up 7% against Rs 27,278 crore as on March 31 ,2017.
The number of loan accounts for last fiscal stands at 75 lakh, an increase of 4 % from 73 lakh accounts in the previous fiscal. Gold pledged for fiscal 2017-18 stands at 155 tonne as against 149 tonne in the year-ago period. Gold loan outstanding at the end of the fiscal stands at Rs 28,848 crore as against Rs 27,220 crore a year ago.
Commenting on the results, managing director George Alexander Muthoot said: “As regards Muthoot Finance, though primary NPA portfolio declined on account of secondary NPA which is nothing but standard loans of a borrower whose any other loan account is a primary NPA, overall NPA has increased. Further, a higher primary NPA 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. The company is currently maintaining increased standard asset provision of 1.25% higher than the regulatory requirement of 0.40%.”
Gross loan assets under management of the group which also operates home loan, microfinance, and insurance broking subsidiaries, recorded a year-on-year increase of 12% at Rs 32,154 crore as against Rs 28,660 crore a year ago.