Muthoot Finance net profit dips 6%

Company's total income grew 9% to Rs 1,411 crore during the period

Muthoot Finance on Tuesday reported a net profit of Rs 220 crore for the March quarter, down six per cent over the corresponding period last year due to increased provisioning that has gone up 10 times to Rs 46.3 crore.  

“The increase in provisioning was due to a rise in provisioning for standard assets,” said George Alexander Muthoot, managing director of the gold loan company.

For the entire year, the NBFC’s standard asset provisioning was Rs 78 crore. Its total income grew nine per cent to Rs 1,411 crore during the quarter.

For the year 2012-13, the company reported a net profit of Rs 1,004 crore, rising 13 per cent over last year. In the full year, the company’s provisions were Rs 89.54 crore compared to Rs 42 crore last year.

The company’s loanbook increased 6 per cent year on year (y-o-y) to Rs 26,000 crore.

It had projected 10 per cent growth in loanbook for the year. Gross non-performing assets increased to 1.91 per cent from one per cent.

The company’s credit losses stood at 0.05 per cent for the year compared to 0.03 per cent last year.

Capital adequacy ratio was at 19.62 per cent at the end March with Tier-I capital of 16 per cent.

Total gold holding (pledged) of the company came down by three tones to 134 tonnes.