Muthoot Finance Ltd., the nation’s largest Gold Loan Company has in the first quarter of the Financial Year 2012-13 registered net profit growth of 29% at Rs.2.46bn, total income grew by 41% at Rs.12.94bn, Retail Loan Assets under Management decreased by Rs.13.37bn to Rs.233.36bn, a decline of 5%.

Commenting on the results Shri. M G George Muthoot, Chairman, Muthoot Finance Ltd said,

“The operating environment of the Company has been substantially redefined on account of the restrictions imposed by Reserve Bank of India in March 2012 on the maximum loan that could be given against the value of the gold jewellery pledged. On account of uncertainties, fears and negative perception created out of regulatory actions, Mutual Funds stayed away from investing in debt instruments. Further, due to change in securitization norms, fresh assignment transactions could not be undertaken. We focused on honouring all our commitments in time.  Hence, in this quarter we have degrown our retail loan portfolio by 5%.  However, the credit losses remained at negligible level of Rs.16mn at 0.007% of gross loan portfolio. The company delivered a YoY net profit growth of 29% at Rs.2.46bn.

Company plan to enter into a consolidation phase during the year focusing on improving its customer service, training to staff and internal controls.

We hope RBI will take necessary steps to remove unfounded fears in the minds various stakeholders including customers, capital market investors, lenders, equity investors etc.

The company is committed to all the stakeholders and will continue the business in Public Interest maintaining highest governance standards”

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