KOCHI: Muthoot Finance Ltd (MFIN), the largest gold financing company in India in terms of loan portfolio and the most profitable financial institution n Kerala, reported an increase of 50 per cent in its net profit for the nine months ending December 31, 2019 to Rs2191 crore against Rs1461 crore for the same period in the previous year.
Loan assets during the period stood at Rs38,498 crore as against Rs32,470 crore as of December 31, 2018, representing an year on year growth of 19 per cent. The consolidated loan assets grew 21 per cent to Rs43,436 crore during the period.
Commenting on the results MG George Muthoot (seen in the picture), chairman of the group said, “We are glad to announce that consolidated loan assets of the group grew by 21 per cent at Rs43,436 crore during the nine-month period ending December 31, 2019.”
Muthoot Homefin (India) Ltd (MHIL), the wholly owned subsidiary, increased its loan portfolio to Rs2025 crore as against Rs1835 crore the company posted for the same period in the previous year, representing an year on year growth of 10 per cent.
Belstar Microfinance Ltd, (BML) , an RBI registered micro finance NBFC and subsidiary company where Muthoot Finance holds 70.01 per cent stake, grew its loan portfolio to Rs2285 crore as against Rs1563 crore – an year on year increase of 46 per cent.
Muthoot Insurance Brokers Pvt Ltd (MIBPL), an IRDA registered direct broker in insurance products and a wholly owned subsidiary of Muthoot Finance generated a total premium amounting to Rs85 crore and Rs217 crore for Q3 and the nine month period respectively.
The subsidiary company generated a net profit of Rs5 crore and Rs12 crore for the third quarter and nine-month period respectively. The Sri Lankan subsidiary – Asia Asset Finance PLC (AAF) where Muthoot Finance holds 72.92 per cent stake, increased its loan portfolio to LKR 1301 crore as against LKR 1163 crore for the same period last year- an increase of 12 per cent YOY.
It turned in a profit after tax of LKR 4 crore and LKR 9 crore for the Q3 and nine months respectively compared with LKR 3crore and LKR7 crore for the same period last year.
The return on average loans increased from 6.24 per cent for the quarter ending December 31, 2019, whereas the capital adequacy ratio (CAR) witnessed a marginal growth from 25.74 per cent to 26.51 per cent during the period, thus giving the company greater headroom for growth.