Muthoot Finance records marginal increase of 2% in the net profit

KOCHI: Muthoot Finance Ltd., major gold financing company, has recorded marginal increase of 2% in the net profit for the second quarter compared to a year ago. The net profit stood at Rs 174 crore at the end of September 30, 2015.

The total income rose 7% to Rs 1140 crore for the quarter. The retain loan asset under management showed 14% increase for the quarter at Rs 24,873 crore. For six months to the end of September 2015 the increase for net profit was 2% at Rs 358 crore while the total income went up 6% to Rs 2283 crore.

Muthoot Finance chairman M G George Muthoot said the company could grow its loan portfolio by Rs 464 crore during the quarter. The board has declared an interim dividend of 40%.

The company has acquired the 100% equity shares of Muthoot Insurance Brokers Prvt. Ltd. for a value of Rs 20 crore. The company is active in the business of selling life and health insurance policies.

``The acquisition of insurance broking business will diversify company’s business activities. We expect the insurance broking activity to excel by becoming 100% subsidiary of Muthoot Finance Ltd.,’’ said George Alexander Muthoot.