MUMBAI: The largest gold loan company Muthoot Finance has reported a robust 87% jump in net profit to Rs 2,345 crore in the September quarter, the highest-ever, as its key business of gold loans saw rapid growth in demand.
The company also reported its highest-ever consolidated loan book of Rs 1,47,673 crore, up 42%, and highest-ever consolidated net profit of Rs 4,386 crore for the first half, up 74% on-year of which standalone net grew 88% to Rs 4,391 crore. Total income rose 55% to Rs 6,461 crore.
Gold loan disbursements to new customers grew to Rs 13,183 crore across 8,90,920 customers and the quantity of gold held as security in its lockers rose from 199 tonnes to 209 tonnes, the Kochi-headquartered company said Thursday.
Consolidated books include those of its subsidiaries -- Muthoot Homefin, Muthoot Money and Asia Asset Finance Sri Lanka. The home finance arm reported a 33% increase in loan book to Rs 3,247 crore from which it earned a revenue of Rs 222 crore, up 44%, and earned Rs 10 crore in profit.
Muthoot Money’s loan book rose 182% to Rs 6,393 crore and its revenue jumped 244% to Rs 501 crore, from which it earned a profit of Rs 106 crore against a net loss of Rs 5 crore in the year-ago period.
Its Sri Lankan arm Asia Asset Finance saw a 48% increase in its loan book at 3,868 crore Lankan rupees from which it earned 40 crore.
The company said overall collection efficiency increased 86 bps to 99.08% from 98.22%.
On the asset quality front, it said gross NPAs rose to 1.69% from 1.59%.
George Alexander Muthoot, managing director, said that in view of the record performance, they are upgrading their FY26 gold loan growth guidance from 15% to 30-35%.
"Favorable regulatory changes by the RBI for gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand. We will continue to expand our non-gold loan portfolio including personal loan, home loan and business loan while maintaining our total non-gold loan AUM including microfinance at about 12-15% of the consolidated loan portfolio," he added.