MFL Q2 net up 88%

Muthoot Finance Ltd (MFL) registered a growth of 88 per cent in its net profit at Rs 215 crore in the quarter ended September 30 ,2011, as against Rs 115 crore in the same period of the previous fiscal. Its total income was Rs 1,105 crore as compared to Rs 529 crore, up 109 per cent.

The company’s gold loan outstanding rose 81 per cent to Rs 20,766 crore, from Rs 11,447 crore. Its gold holdings touched 130 tonnes during Q2 as against 90 tonnes, registering a growth of 44 per cent. Its branch network increased to 3,274 from 2,038.

Addressing the media here on Thursday, George Alexander Muthoot, managing director, said “On account of inflation-driven increase in interest rates and impact of loss of priority sector funding, there has been increase in our cost of borrowings.”

The company has passed on this increase to its borrowers. “We are observing a shift of customer base from unorganised sector to our fold,” he said.