Muthoot Finance Reported 53 % Growth in Profit

Muthoot Finance, the country's largest gold financing company in terms of loan portfolio, reported 53 per cent increase in net profit at Rs 3,018 crore for FY20 as against Rs 1,972 crore in the previous year.

Loan assets stood at Rs 41,611 crore as on March 31 as against Rs 34,246 crore as at previous year-end, marking a growth of 22 per cent.

The company's wholly-owned subsidiary Muthoot Homefin India Ltd increased its loan portfolio by four per cent to Rs 1,977 crore as against Rs 1,908 crore in FY19. Total revenue for FY20 stood at Rs 288 crore as against Rs 226 crore in the previous year.

It achieved a net profit of Rs 32 crore in FY20 as against FY19's profit of Rs 36 crore while the stage three asset on gross loan asset percentage as on March 31 stood at 1.71 per cent.

"Disbursements and collections have normalised and we are expecting an increase in disbursement once the movement of people increases and economic activity level picks up," said Managing Director George Alexander Muthoot.

"We are looking to grow gold loan business by about 15 per cent for this year," he said in a statement.