NEW DELHI: Gold financing company Muthoot Finance today reported a jump of 53 per cent in standalone net profit at Rs 454 crore for the second quarter ended September 30.
It had reported a net profit of Rs 297 crore in the corresponding quarter of previous fiscal.
Total income increased to Rs 1,670 crore from Rs 1,386 crore, it said in a statement.
However, there was a significant rise in non-performing assets (NPAs) with the gross NPAs rising to 4.56 per cent of the gross advances as at end-September 2017 from 2.19 per cent at end-September 2016. Net NPAs too rose to 3.99 per cent from 1.82 per cent.
In terms of value, gross NPAs were Rs 12,593 crore by end of second quarter of 2017-18 from Rs 6,016 crore a year ago.
Net NPAs were Rs 11,021 crore against Rs 4,997 crore.
The company made reserves of Rs 1,571 crore as provision for NPAs or bad loans, up from Rs 1,019 crore a year ago.
"The rise in NPA accounts in Muthoot Finance is mainly on account of more time given to customers for repayment on our shorter tenor loans of 6 months which became NPA faster than our conventional loan tenor of 12 months.
"Company has also increased standard asset provision to 1.25 per cent higher than the regulatory requirement of 0.35 per cent," said George Alexander Muthoot, Managing Director of the company.
The company's loan assets under management were Rs 27,608 crore as at end-September 2017.
The Kerala-based non-banking finance company (NBFC) provides personal and business loans secured by gold jewellery or gold loans, primarily to individuals who have gold ornaments but do not have access to formal credit within a reasonable time.
People with no access to credit at all can also avail short term loans.
Stock of the company closed 0.81 per cent up at Rs 473.10 on BSE today.