Muthoot Finance Q1 profit jumps 53%

Kochi: Muthoot Finance Ltd, registered 53 % increase in net profit at Rs 454 crore for Q2 FY18 as against Rs. 297crore in the previous year. Loan assets stood at Rs. 27608 crore on Sep 30, 2017 a rise of 1% from a year earlier.

The return on average loan assets increased to 6.54% in the second quarter from 4.45% a year ago. The capital adequacy ratio was at 26.49% at the end of the second quarter compared with 23.67% a year earlier.

The net profit for first half of FY18 stood at Rs.805 crore an increase of 42% from a year ago. The gold loan outstanding for the first half year ended September 30 came to Rs 27534 crore, a marginal rise of 0.5% from a year ago . The average gold loan per branch improved by 1% to Rs 6.42 crore in the first half from the same period a year ago. Credit losses increased by 133% during the half year to Rs 7 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 6months which became NPA faster than our conventional loan tenor of 12months . Company has also increased standard asset provision to 1.25% higher than the regulatory requirement of 0.35%”