Muthoot Finance Q2 net profit jumps 70% to Rs 297 cr

Gold loan financier Muthoot Finance reported 70 per cent jump in net profit to Rs 297 crore for the quarter ended September 30, 2016.
The company had posted a net profit of Rs 175 crore in the corresponding quarter of previous fiscal.
The retail loan assets under management stood at Rs 27,456 crore as on September 30, 2016, an increase of 10 per cent from last year's Rs 24,873 crore, it said in a release.
The company has completed its initially announced acquisition of 57.16 per cent equity share capital of Belstar Investment and Finance Pvt Ltd and hence became a subsidiary, it said.

"We are glad to communicate the excellent performance of the company during the quarter in terms of growth in loan portfolio of Rs 1,596 crore as well as 70 per cent increase in net profit," Muthoot Finance Chairman M G George Muthoot said.
At the board meeting held today, the company also got approval from its Board Directors to raise funds up to Rs 1,000 crore by issuing redeemable non-convertible debentures on a private placement basis.
The company feels that the Indian macro-economic scenario is improving which is also getting reflected in its business.
Shares of Muthoot Finance closed 3.97 per cent down at Rs 339.90 on BSE.