Muthoot Finance net profit surges 4% in third quarter

NBFC Muthoot Finance on Saturday reported a 4% year-on-year (y-o-y) increase in its third quarter consolidated net profit to Rs 1,043.6 crore largely due to the good performance of the gold loan division.

The Kerala-based lender had reported a consolidated net profit of Rs 1,006.6 crore in the year-ago period and a net profit of Rs 1,002.9 crore in the preceding second quarter.

The finance company which also operates a home loan, microfinance and insurance broking subsidiaries said that net profit of the gold loan division increased 4% y-o-y to Rs 1,028.9 crore .

Consolidated loan assets under management of Muthoot increased by 9% y-o-y to Rs 54,687.6 crore. The gross loan assets under management declined quarter-on-quarter by 1%.

George Alexander Muthoot, managing director, said , “As the financial sector continue to be in grip of Covid pandemic in the aftermath of second wave and the slowing down on account of the third wave, our focus was on the recovery of loans especially the gold loan segment. Despite the situation, the quarter witnessed 22% increase in disbursements and 38% increase in recoveries in gold loans. During the quarter, we disbursed fresh loans to 3.81 lakh new customers amounting to Rs 4,007 crore and to 4.98 lakh inactive customers amounting to Rs 4,426 crore.”

“As regards our subsidiary, we continue to maintain a cautious stance. The collections across microfinance, vehicle finance and home loans have improved. Our subsidiaries in microfinance and in Sri Lanka registered a q-o-q growth in their loan portfolios of 14% and 8%, respectively. We expect our improved versions of our several digital initiatives like mobile app, POS, online gold loans, loan at home app, etc., to facilitate our loan growth and will continue to see our focus,”he added.

Loan assets of the gold loan division for the quarter stand at Rs 54,214.9 crore compared to Rs 49,622.5 crore in the comparable quarter of the previous year, which is an y-o-y growth of 9%.

Total weight of gold pledged with the company stands at 178 tonne at the end of the third quarter as against 166 tonne in the corresponding period of last fiscal.

from Banking & Finance – The Financial Express https://ift.tt/6qHYKLu