Muthoot Finance Q4 net up 22%

The gold finance company Muthoot Finance reported 22 per cent in net profit during the fourth quarter of the financial year, mainly due to pick up in lending.

The net profit for the quarter ended March 31, 2017 rose to Rs 322 crore as against Rs 265 crore.

Its gross and net NPA improved to 2.06 per cent and 1.69 per cent in respectively as on March 31, 2017 on better collections and reliastions.

Retail loan AUM grew 12 per cent to Rs 27,278 crore during the fourth quarter.

The company acquired 64.60 per cent stake in equity share capital of Belstar Investment and Finance, an RBI registered micro finance NBFC. It acquired 100 per cent stake in Muthoot Insurance Brokers.Its insurance subsidiary has increased first year premium by 46 per cent at Rs.70 crore.

“Our subsidiaries today contribute about 5 per cent of the group assets and we are looking at increasing the share of subsidiaries to about 10 per cent of the group assets in the coming year,” said George Alexander Muthoot, Managing Director.