Spike in gold loans boosts Muthoot Finance’s FY21 performance
Total loan assets grew 26 per cent year-on-year to Rs 52,622 crore during the stressful year 2020-21 from Rs 41,611 crore a year ago.
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| A+A A- By Express News Service
NEW DELHI: The pandemic year has been a blessing in disguise for India’s largest gold loan company Muthoot Finance. A rapid surge in demand for gold loans has helped the lender cross Rs 10,000 crore in total revenue for 2020-21. Its gold loan portfolio crossed Rs 52,000 crore while net worth breached the Rs 15,000 crore mark all of which are milestones the company has achieved for the first time in its history.
Muthoot reported Rs 995.6 crore net profit for the January-March quarter, around 22.1 per cent growth compared to Rs 815.1 crore in the same quarter last year
The company had posted a standalone profit after tax of Rs 815 crore in the year-ago period. For the full year, the standalone net profit rose by 23 per cent to Rs 3,722 crore as against Rs 3,018 crore in FY20. We have seen good business growth during the last year, especially in the second and the third quarters. After the pandemic, there was a lot of demand for gold loans. Everybody wanted to restart their business and wanted quick funding, which is why the demand for gold loans grew, its Managing Director George Alexander Muthoot said. The lender was able to grow its asset under management (AUM) in gold loan segment by 27 per cent in FY21 compared to a growth of 22 per cent in the previous year.
Muthoot Finance posts 22% rise in net profit in Q4 of FY21
June 02, 2021
George Jacob Muthoot, Chairman, Muthoot Finance×
George Jacob Muthoot appointed as the Chairperson of the Board of Directors
Gold loan lender Muthoot Finance Ltd has registered a 22 per cent increase in its net profit in Q4 of FY21 at ₹996 crore against ₹815 crore in the corresponding period of the previous year. The net profit for the whole year went up to ₹3,722 crore against ₹3,018 crore, an increase of 23 per cent.
Gold loan assets up by ₹2304 crore
Loan assets stood at ₹52,622 crore as on March 31, 2021 against ₹41,611 crore as on March 31, 2020, a growth of 26 per cent. During the quarter, gold loan assets increased by ₹2,304 crore.
Read more about Muthoot Finance spurts after Q4 PAT grows 22% to Rs 1,024 cr on Business Standard. Muthoot Finance rallied 7.68% to Rs 1,409 after the company s consolidated net profit jumped 22.49% to Rs 1,023.76 crore on 18.43% rise in total income to Rs 3,118.97 crore in Q4 March 2021 over Q4 March 2020.