Muthoot Finance Q4 net profit jumps 61% to Rs 265 crore
Muthoot Finance has a branch network of 4,275, spanning 27 states and two Union Territories.
Country's largest gold financing company Muthoot Finance on Friday reported a 61% 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% 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% consideration in Chennai-based microfinance company Belstar Investment and Finance and would acquire 37.66% 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% 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% 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% to 59.70%.
Muthoot Finance has a branch network of 4,275, spanning 27 states and two Union Territories.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
09:20 PM IST