Company gets approval to open 150 new branches
BBN Bureau
KOCHI/August 13-2022: Muthoot Finance Ltd, India’s largest gold loan company, reported a consolidated net profit of Rs825 crore for the quarter ended June 30, 2022 (Q1), representing 18 per cent decline sequentially compared with Rs1006 crore in the previous quarter.
The Q1 consolidated net profit was 16 per cent down year on year compared with Rs979 crore the company logged for the same period in the earlier year.
The standalone net profit for the quarter under review was Rs802 crore, down by 17 per cent compared with Rs969 crore the company earned for the same quarter in the previous year.
150 new branches soon
The company said it has received approval to open 150 new branches from the Reserve Bank of India (RBI). During the period, Muthoot Finance raised Rs643 crore through public issue of non-convertible debentures (NCDs).
George Jacob Muthoot, Chairman, Muthoot Group, said though there is a dip in loan assets during the quarter, the company has achieved a year on year (YoY) growth of 9 per cent in loan assets at Rs63,444 crore.
“High frequency indicators suggest recovery in economic activity, with strong urban demand environment though the rural demand is still reviving. The Indian economy has been resilient and we are optimistic about steady demand conditions for gold loans coupled with the huge untapped opportunity in gold loan segment,” Jacob Muthoot added.
George Alexander Muthoot, Managing Director, Muthoot Finance said, “The impact of the very low interest rate teaser loans has resulted in lower yields during Q1FY23. The launching of teaser loans was a strategic move taken in Q3 FY 22 and it enabled us to attract a set of new high value customers. During the quarter, we focused on migrating such teaser loans to higher rate schemes and we successfully completed this exercise as on June 30, 2022.”
Consolidated loan assets under management for the company during the period stood at Rs63,444 crore up by 9 per cent year on year, whereas the standalone loan assets under management stood at Rs56,689 crore, up by 8 per cent year on year.
