BENGALURU, May 14 (Reuters) - India's Muthoot Finance on Thursday reported a doubling in fourth-quarter profit, driven by strong growth in its gold-loan portfolio.
o The country's largest gold loan financier posted a 105% jump in net profit to 30.86 billion rupees ($322.26 million) for the quarter ended March 31
o Its standalone gold loan assets under management rose 50% year-on-year, taking total AUM 50% higher to 1.63 trillion rupees
o Total revenue from operations rose 68.5% to 81.80 billion rupees
o Net interest margin or lending margins rose to 13.38% for the quarter from 12.77% in the previous quarter and 11.27% a year earlier
o Analysts expected Indian gold loan financiers to see strong loan growth in March quarter amid high prices for the precious metal
o Earlier this month, smaller peer Manappuram Finance reported a bigger-than-expected profit helped by strong gold-loan growth
($1 = 95.7625 Indian rupees)
(Reporting by Nishit Navin; Editing by Ronoojoy Mazumdar)
Muthoot Finance Limited is an India-based Non-Banking Financial Company (NBFC), which is engaged in the business of financing. The Company provides business loans secured by gold jewelry or gold loans. It also provides collection services, loan against property, and money transfer services. Its gold loan schemes include Muthoot One Percent Loan, Muthoot Ultimate Loan, Muthoot Delight Loan, Muthoot Mudra Loan, Muthoot Advantage Loan, Muthoot High Value Plus Loan, Muthoot High Value Loan, Muthoot Big Business Loans, Best Value Loan, and High Value Retention. The Company’s services include gold loan, loan at home, housing finance, personal loan, small business loan, insurance, small and medium-sized enterprises (SME) loans, corporate business loan, vehicle loan, mutual funds, non-convertible debentures (NCD), custom offers, pan card, micro finance, digital and cashless, milligram rewards, and national pension system (NPS).
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