Muthoot Finance Ltd has registered a 21 per cent increase in its net profit at ₹187 crore in Q3 as against ₹154 crore last year.

Retail loans registered an increase of ₹117 crore during the quarter and ₹1,582 crore at 7 per cent during the last nine months.

Asia Asset Finance Plc, the company’s Sri-Lankan subsidiary, has made considerable progress in its business. This will be its first complete financial year after becoming a subsidiary of Muthoot Finance.

Interest income has increased by 42 per cent at LKR 983 million, which has contributed to the overall improvement of its profitability by 54 per cent, reaching LKR 121 million. The companies’ asset base grew by 36 per cent, reaching the LKR 7-billion milestone. The introduction of gold loans and the expansion of its micro finance portfolio have been the key contributors to this year’s growth.

George Alexander Muthoot, Managing Director, said “the fall in interest cost as well as better control on expenditure and lower provisions has enabled us to show a better performance this quarter. Since gold loans are of short duration and consequent to higher level of demand being absent, incremental growth in portfolio is muted. However, we are seeing good demand for the new customer-friendly lifestyle schemes launched. To meet unforeseen contingencies and as a matter of higher level of investor comfort, we have increased the standard asset provision again from 0.50 per cent to 0.52 per cent, as against the regulatory requirement of 0.25 per cent, he said.

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