Gold loan company Muthoot Finance Ltd has registered 29 per cent growth in net profit at Rs 246 crore in the first quarter of 2012-12 It had netted Rs 190 crore in the corresponding year-ago period .

The total income grew 41 per cent to Rs 1,294 crore, while the retail loan assets under management fell by Rs 1,337 crore to Rs 23,336 crore, a 5 per cent decline.

Mr M. G. George Muthoot, Chairman, MFL, told newspersons that the operating environment has been substantially redefined on account of the restrictions imposed by the RBI on the maximum loan that could be given against the value of the gold jewellery pledged.

On account of uncertainties, fears and negative perception created out of regulatory actions, he said mutual funds stayed away from investing in debt instruments. Further, due to change in securitisation norms, fresh assignment transactions could not be undertaken.

The company focussed on honouring all its commitments in time. Hence in this quarter, MFL de-grew its retail loan portfolio by 5 per cent. However, credit losses remained at a negligible Rs 1.60 crore, that is, 0.007 per cent of the gross loan portfolio, he said.

Mr George Alexander Muthoot, Managing Director, said MFL plans to enter into a consolidation phase during the year focussing on improving customer service, training to staff and internal controls.

The company with a branch network of 3,780 is planning to open 250 branches in the current fiscal and is looking at potential areas in this regard, he said.

> sajeevkumar.v@thehindu.co.in

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