IPO-bound Muthoot Fincorp doubles Q2 profit to Rs 779 crore, bucks trend of rising bad loans

Kolkata: Muthoot Fincorp, which filed for Rs 3000 crore initial public offer in August, doubled its net profit for the second quarter at Rs 779 crore as against Rs 388 crore in the year-ago period while its asset quality improved bucking the sectoral trend of rising bad loans.

The gold loan company however made a higher provision of Rs 183 crore to cover credit risks for the quarter as compared with Rs 106 crore in the comparable quarter last year.

Its gross non-performing assets ratio improved to 1.07% at the end of September as compared with 1.41% a year prior.


For the first six months of the fiscal, the net profit stood at Rs 1485 crore, up 162% over Rs 568 crore in the year-ago period.


The company board at its meeting on Saturday also recommended taking shareholders' approval for reappointment of managing director Thomas John Muthoot, joint managing directors Thomas George Muthoot and Thomas Muthoot and their terms of remuneration. All the reappointment would be effective from February 1, 2027 for a further five-year period.