Muthoot Microfin reported a 3.6 times jump in Q2 net profit to Rs 111 crore. Total income rose 27% to Rs 733 crore, helped by growth in secured lending. CEO Sadaf Sayeed said, "The focus remained on the secured lending portfolio, which is showing better yield with no delinquency."
Muthoot Microfin reported a 3.6-fold year-on-year rise in Q2 net profit to Rs 111 crore, supported by secured lending growth and improved asset quality. Total income increased 27% to Rs 733 crore, while gross NPAs declined to 3.38%.
Muthoot Microfin reported a 3.6 times surge in second quarter net profit at Rs 111 crore against Rs 31 crore in the year ago period, buoyed by expansion in secured lending and improvement in asset quality.
The lender saw its net interest margin for the quarter rise to 12.5% from 12% in the preceding three-month period.
Its pre-provision operating profit rose 67.4% year-on-year at Rs 249 crore on 27% rise in total income at Rs 733 crore.
"The focus remained on the secured lending portfolio, which is showing better yield with no delinquency," chief executive officer Sadaf Sayeed said.
The gross loan portfolio grew 22% year-on-year to Rs 15,323 crore at the end of September while the secured non-microfinance portfolio surged 31%.
Its asset quality strengthened further with gross non-performing assets ratio improved by 123 basis points year-on-year to 3.38%.