Net interest income (interest income minus interest expense) grew 31% to Rs 11.03 billion from Rs 8.44 billion in the year ago quarter. Net interest margin improved to 14.68% in Q1FY19 against 12.24% in previous year quarter.
The consolidated loan assets of the Group increased by 16% at Rs 343 billion during the quarter under review against Rs 295 billion in the corresponding quarter of previous fiscal.
Managing director of Muthoot Finance, George Alexander Muthoot said the effort was to grow the non-gold loan portfolio.
"At present, almost 90% of our portfolio is gold loan, with the rest coming from housing finance, microfinance, and the Sri Lankan subsidiary. We are planning to bring the gold loan to 85% by the end of this year and to 80 per cent during the next year," Muthoot said.
Muthoot Finance is expected to start its mutual funds business and vehicle finance business during this fiscal year as part of its plan to gradually grow its non-gold loan portfolio. The company has received in-principle approval to launch the asset management company and would set up the business in six months.