Muthoot Finance reports 59 pc jump in Q1 net profit at Rs 841 cr
Aug 19, 2020
Kochi (Kerala) [India], Aug 19 : Muthoot Finance, the country's largest gold financing company in terms of the loan portfolio, on Wednesday reported 59 per cent jump in its net profit at Rs 841 crore for Q1 FY21 as against Rs 530 crore in the same period of previous fiscal.
Loan assets stood at Rs 41,296 crore as compared to Rs 35,816 crore, marking a year-on-year growth of 15 per cent. But loan assets decreased by Rs 315 crore due to closure of branches in April 2020 during the COVID-19 pandemic and subsequent lockdown.
Chairman M G George Muthoot said the company is incentivising customers to encourage digital usage with a cashback scheme to service interest payments through online platforms.
"With businesses resuming, we have witnessed a surge in gold loans as it is the most convenient form of availing working capital for small businesses and traders to kickstart their businesses," he said in a statement.
Managing Director George Alexander Muthoot said the company witnessed a significant increase in disbursements since June which continues in July and August.
"As initially guided, we are looking forward to achieving a 15 per cent growth in the gold loan portfolio for FY21. The company also maintained a liquidity buffer of Rs 8,477 crore as cash, bank and investments in liquid funds as on June 30."
He said non-gold loan portfolio in subsidiaries constituted about 12 per cent of the consolidated loan portfolio. Collections in non-gold loan portfolio have significantly improved month-on-month.
Additional COVID expected credit losses (ECL) provisions to the extent of Rs 32 crore was made for non-gold loan portfolio in the quarter.
