A customer waits to deposit 100 rupee currency notes at a bank counter in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Muthoot Capital Expects Asset Quality To Remain Stable In Current Financial Year

Muthoot Capital Services Ltd. expects bad loans to remain stable at current levels after reporting a slight increase in the current quarter.

Non-performing assets has gone up marginally in this quarter as banks do a lot to reduce them in the fourth quarter, Muthoot Capital’s Chief Financial Officer Vinod Panicker told BloombergQuint in an interaction.

The Kerala-based non banking financial company's gross bad loans, as a percentage of total assets, rose to 4.8 percent for the quarter ended June from 4.6 percent in the previous quarter. Net profit more than tripled to Rs 20.64 crore from Rs 6.1 crore in the same quarter last year. "We expect to maintain NPAs, may be it could only be better."

Shares of Muthoot Capital Services Ltd. were trading down over 7 percent following the announcement of the results.