Gold loan non banking financial company (NBFC) Muthoot Finance has posted net profit of Rs 270 crore in the third quarter growing seven% year on year. Gold loan companies are facing the pressure this year on their profitability on account of Reserve Bank of India’s (RBI) measures to curb loan to value ratio at 60% and taking out the loans to these companies out of priority sector lending for the banks which has resulted in higher cost of funds for these companies.
Muthoot’s total income rose to Rs 1365 crore rising 11%. Capital Adequacy Ratio was at 19.5% compared to 18.33 a year ago.
Company’s assets under management (AUM) increased by Rs 1969 crore in the third quarter to Rs 25,712 crore.
Gross NPAs were at 0.021% as against 0.020% at the end of nine months.