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MUMBAI : Kerala-based Muthoot Finance reported a 22% year-on-year (y-o-y) growth in net profit owing to a strong growth in loan assets. The largest gold loan financing company reported a net profit of 995.6 crore at the end of March quarter as against 815 crore a year ago.

The company’s loan assets grew 26% y-o-y stood at 52,622.3 crore as of 31 March 2021 compared with 41,610.6 crore a year ago. During the quarter, gold loan assets increased by 27% y-o-y to 51,926 crore. Non-gold assets on the other hand contracted by 17% y-o-y to 6,957 crore at the end of March 2021.

Despite the pandemic, the fiscal year 2020-21 saw a strong demand for gold loans as customers borrowed against gold to meet their immediate financial needs. The rise in gold prices also added to the higher loan availability for customers during the year.

The company’s net interest income grew 15.7% y-o-y to 1,829.5 crore as against 1,580.6 crore a year ago. Net interest margin stood at 14.27% at the end of March quarter.

“During the quarter, we disbursed fresh loans to 361,000 new customers amounting to 2,753 crore and to 432,000 inactive customers amounting to 2,917 crore," said George Alexander Muthoot, managing director, Muthoot Finance.

The finance company, which also operates home loan, microfinance and insurance broking subsidiaries, declared a dividend of 20 per share for the financial year 2020-21 with a total payout of 802 crore in April 2021.

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