Gold loan company Muthoot Finance today reported 29% growth in net profit at Rs 246 crore during the first quarter ended June 30.
The Profit After Tax (PAT) during the same period last year was Rs 190 crore, Muthoot Finance Ltd chairman M G George Muthoot told reporters releasing the first quarter results after a board meeting here.
Total income grew by 41% at Rs 1,294 crore, retail loan assets under management decreased by Rs 1,337 crore to Rs 23,336 crore, a decline of five%, he said.
The RBI restrictions in March this year with regard to the maximum loan that could be given against the value of the gold jewellery pledged did create concern, he said.
Managing Director Alexander Muthoot said the company was on consolidation phase this year as part of which it has 'trimmed' its expenses. This year only 250 new branches would be opened against 1,000 in 2011-12 and 950 in 2010-11.
The company has 3,700 branches all over the country except the North East. "So only in places we have no presence, new branches will be opened. We have not relocated or closed down branches," he said, adding there would be no retrenchments either as part of cost cutting.
Executive Director K Padmakumar said Mutual Funds stayed away from investing in debt instruments due to uncertainties, fears and negative perception created out of regulatory actions. Besides, due to change in securitisation norms, fresh assignment transactions could not be undertaken.
However, credit losses remained at a negligible level of Rs 1.60 crore at 0.007% of gross loan portfolio, he said.
