Muthoot Fincorp doubled its second-quarter net profit to Rs 779 crore from Rs 388 crore a year earlier. The gold loan lender, which filed for a Rs 3,000 crore IPO in August, saw its bad-loan ratio improve to 1.07%. It also raised provisions to cover credit risks during the quarter.
Synopsis
Muthoot Fincorp doubled its second-quarter net profit to Rs 779 crore from Rs 388 crore a year earlier, while its gross bad-loan ratio improved to 1.07% despite rising stress across the sector. The gold loan lender, which filed for a Rs 3,000 crore IPO in August, also raised provisions during the quarter to cover credit risks.
Kolkata: Muthoot Fincorp, which filed for Rs 3000 crore initial public offer in August, doubled its net profit for the second quarter at Rs 779 crore as against Rs 388 crore in the year-ago period while its asset quality improved bucking the sectoral trend of rising bad loans.
The gold loan company however made a higher provision of Rs 183 crore to cover credit risks for the quarter as compared with Rs 106 crore in the comparable quarter last year.
Its gross non-performing assets ratio improved to 1.07% at the end of September as compared with 1.41% a year prior.
For the first six months of the fiscal, the net profit stood at Rs 1485 crore, up 162% over Rs 568 crore in the year-ago period.
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