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Muthoot Capital Services Ltd is all set to introduce a new product providing loans against Gold Exchange Traded Funds. Modalities in this regard will be worked out and the product will be launched shortly.
Mr Thomas George Muthoot, Managing Director, Muthoot Capital Services Ltd, said that the Gold ETFs are securities issued by asset management companies against 995 purity gold kept by them with depositories. The securities are in dematerialised form, easily transferable, easily en-cashable and are traded in stock exchanges.
By introducing the new product, the company will be putting to use the Group's core competence in granting loan against gold to provide liquidity for investors in ETF thereby promoting popularity of ETF. It is estimated that there were about two-and- a-half lakh investors in Gold ETF in the country and the product is gaining popularity among investors, he said.
Auto loan too
The company is also introducing Smart Plus Auto Loan under the automobile finance segment in which the full cost price of the vehicle is given as loan, enabling the borrowers to leverage their gold ornaments against the margin requirement. He said that the company had disbursed Rs 138.53 crore in two-wheeler financing during the year 2010-11 and is expected to disburse Rs 250-300 crore in the current fiscal.
The company is committed to meeting the needs of the market under automobile finance sector and is aiming to become the leading player in the segment in South India by March 2013. The company has been expanding the activities in the four south Indian states and Goa under the automobile finance segment, mainly two-wheeler financing, he added.
Mr R. Manomohanan, Chief Executive Officer, said that the net profit of the company has registered a growth of 29.96 per cent to touch Rs 267.90lakh during the quarter ended March 31 against Rs 206.14lakh in the corresponding quarter in the previous year. The total income increased to Rs 1153.62 lakh during the quarter from Rs 662.29lakh, registering a growth of 74.19 per cent. The profit before tax during the corresponding period has increased by 28.64 per cent from Rs 313.71 lakh to Rs 403.57lakh.
During the whole financial year, the net profit of the company recorded 34.75 per cent growth to touch Rs 966.55lakh against Rs 717.28lakh compared with last financial year. The total income registered a growth of 67.87 per cent from Rs 2,247.56 lakh during the previous year to Rs 3,772.92 lakh in the current year. Commensurate with increase in operations, the interest expenses increased by 67.30 per cent to Rs 1157.07 lakh from Rs 691.61lakh in the last year.
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