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The net profit of Manappuram Finance has dropped 64.76 per cent to Rs 208.40 crore in FY13 against Rs 591.46 crore in the previous fiscal.
The company attributes this to under-recovery of interest amounting to Rs 284.20 crore on a specific pool of its portfolio that was booked during the third quarter of FY12. The company has also made an additional provision of Rs 51.40 crore towards reversal of interest booked in FY12.
According to a statement issued here, the company said it faced a higher incidence of defaults in this pool after it began realigning its portfolio under the new loan-to-value regime brought into effect in March 2012. The additional provisioning, it said, is a prudential measure that considers the further fall in gold prices during April this year. The interim dividend of Rs 1.50 per share of face value of Rs 2, already declared during the year, has been recommended as the final dividend for the year ended March 31.
V. P. Nandakumar, Managing Director and CEO, said, “…Our company has faced considerable stress last year on account of policy changes and market forces. However, this is a temporary phase unlikely to hold back the company or the industry beyond the short term,” he said.
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