MUMBAI: The second largest gold loan company Muthoot Fincorp, which is the flagship arm of the 138-year-old Muthoot Pappachan Group, has reported a 59.6% jump in net profit for the September quarter.
The privately held company said its revenue grew 28.4% in the reporting period to Rs 2,712.13 crore.
For the first half of the current fiscal, the Thiruvanathapuram-based company’s consolidated net profit rose to Rs 630.4 crore and consolidated revenue to Rs 4,972.54 crore, up from Rs 567.62 crore and Rs 3,570.83 crore respectively in the year-ago period.
The assets under management jumped to Rs 55,707.53 crore from Rs 40,248 crore, the company said Wednesday.
The asset quality continued to improve with gross NPAs printing in at 1.41% and net NPAs at 0.76%.
CEO Shaji Varghese said even as gold loans continue to anchor the business, they will be focusing more on scaling MSME financing, digital lending solutions, savings, and protection.
Muthoot Finance and Manappuram are the top gold financing companies in the country. While these two are listed entities, Muthoot Fincorp is still privately held. Other players like IFFL do not have the scale these Kerala based companies have.
Though there are many private players in the gold loan business, public sector ones lead the nearly Rs 14-trillion market with over 65% share.