Indian gold-loan financier Muthoot Finance’s profit doubles on strong loan growth


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.

• 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

• Its standalone gold loan assets under management rose ⁠50% year-on-year, taking total AUM 50% higher to 1.63 trillion rupees

• Total ​revenue from ​operations rose ​68.5% to 81.80 ‌billion rupees

• 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

• ‌Analysts expected Indian gold ​loan financiers to ​see strong ​loan growth in March quarter ‌amid high prices for ​the precious ​metal

• 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)



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