Country's largest gold financing company Muthoot Finance today reported a 61 per cent jump in net profit at Rs 265 crore for the quarter ended March, 2016 driven by higher loan disbursals.
For the full year, the lender's net profit increased by 21 per cent to Rs 810 crore, the Kochi-based company said in a statement, adding its loan disbursals rose a tepid 4 per cent at Rs 970 crore during the year, taking the overall assets under management (AUMs) to Rs 24,379 crore, while its income rose to Rs 4,875 crore.
Company Chairman M G George Muthoot attributed the good set of numbers to aggressive collection efforts on overdue accounts. Other factors were better gold prices and higher realization on auction of overdue loan accounts.
He said during the quarter, the company acquired a 19.50 per cent consideration in Chennai-based microfinance company Belstar Investment and Finance and would acquire 37.66 per cent more in the same soon by subscribing to additional capital, making it a subsidiary.
Belstar has 76 branches spread over five states of Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra and Puduchery with a loan portfolio of Rs 264 crore.
The company has invested Rs 44.91 crore in Muthoot Homefin, which is into affordable housing, acquiring 79 per cent of share capital, making it a subsidiary. It has operations primarily in Kerala and Maharashtra and has a loan portfolio of Rs 30 crore.
Muthoot said the company is also awaiting regulatory clearance to acquire 100 per cent of equity in Muthoot Insurance Brokers.
During the March quarter, it also increased shareholding in its Sri Lankan arm Asia Asset Finance Plc from 51 per cent to 59.70 per cent.
Muthoot Finance has a branch network of 4,275, spanning 27 states and two Union Territories.
