Muthoot Finance Q2 Net at Rs 174 crore

Leading gold financing company Muthoot Finance today said its net profit rose to Rs 174 crore for the quarter ended September, as against Rs 171 crore in the year-ago period.
Retail loans registered an increase of Rs 464 crore at two per cent during the quarter and Rs 3,071 crore at 14 per cent during the last 12 months, it said in a release.
The firm said its Sri Lankan subsidiary, Asset Asia Finance PLC, has made considerable increase in the lending portfolio.
"The loan portfolio has grown by 52 per cent as on September 30, this year at LKR 5.4 billion as against LKR 3.6 billion in the previous year."

"The profit after tax for the same period has increased by 40 per cent at LKR 76.8 Million and LKR 55.0 Million respectively," it said.
The company has also announced that it is acquiring 100 per cent equity shares of Muthoot Insurance Brokers Private Limited (MIBPL), an entity licensed by IRDA to act as Direct broker since 2013, at a purchase value of Rs 20 crore--subject to regulatory approvals.

MIBPL is active in the business of selling Life and Health insurance policies.
Commenting on the results, M G George Muthoot, Chairman, stated "An economy where optimism is yet to become reality, Muthoot Finance could grow its loan portfolio by Rs 464 crore during the quarter and deliver good profits."

"We are rolling out various customer friendly schemes which we hope to bring in new set of customers as well as newer usages for gold loan. Board of Directors is glad to declare an interim dividend of 40 per cent resulting in a payout of Rs 191 crore including tax," he said.