Comments
Muthoot Finance Ltd has registered a 13 per cent growth in its net profit to Rs 1,004 crore in FY13 against Rs 892 crore in the previous fiscal.
The total income in FY13 stood at Rs 5,387 crore against Rs 4,549 crore in FY12, a growth of 18 per ce
nt. The retail loan assets under management increased by Rs 1,713 crore to Rs 26,387 crore in FY13.
For the quarter ended March 31, the net profit stood at Rs 220 crore against Rs 235 crore in the corresponding period last year.
The board of directors has recommended a dividend of 45 per cent for FY13.
Tumultuous year
According to M. G. George Muthoot, Chairman, the company could achieve 13 per cent growth in net profit in a tumultuous year marked by regulatory changes and sentiment-driven market speculations affecting the interest of various key stakeholders.
He said that the company has decided to increase the standard asset provisioning from the RBI stipulated norm of 0.25 per cent to 0.30 per cent in the quarter and increase it over a period of time to 0.40 per cent. This is in keeping with the Usha Thorat committee recommendations and draft RBI circular issued in December 2012 for public comment.
The company is strengthening its collection mechanisms so as to restrict the increase in NPA accounts.
While gold price is a relevant factor for the gold loan business, it need not have a direct correlation to the collection behaviour.
The perception of the business model needs to be understood in this respect, he said.
> sajeevkumar.v@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.