Muthoot Capital Confident Of Meeting Bad Loan Guidance For The Year

Muthoot Capital Services Ltd. said it’s confident of meeting the bad loan guidance for the financial year ending March 2019.

“Our gross non-performing assets stood at 5.6 percent of the overall book. We have committed to bringing that down to 5 percent by this year-end,” Chief Financial Officer Vinod Panicker told BloombergQuint. The non-banking financial company’s gross bad loans deteriorated to 5.6 percent in the September quarter from 5.3 percent in the quarter-ended March.

The ratio of net bad loans is expected to drop to 3 percent by the year-end, from the current 3.5 percent, Panicker added

Earnings highlights:

• Profit jumped 94 percent year-on-year to Rs 20.13 crore.
• Revenue from operations rose 39 percent to Rs 131.8 crore.
• Other income rose to Rs 21 crore from Rs 8 crore.
• Provisions stood at Rs 13.8 crore compared with Rs 11.8 crore in the previous quarter.