Manappuram Finance Q1 Review - Gold Loan Growth Slows Down Further: IDBI Capital

An agent checks the purity of a gold necklace during the processing of a customer's gold loan application at their home in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Manappuram Finance Q1 Review - Gold Loan Growth Slows Down Further: IDBI Capital

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Manappuram Finance Ltd.’s gold portfolio de-grew by 7% QoQ due to higher auctions (Rs 15 billion versus Rs 4 billion QoQ) as well as high assets under management attrition in large ticket size (three to five lakhs).

This resulted into slowdown in AUM growth to (down) 2% YoY versus 8% YoY (FY21).

However, Manappuram Finance's non-gold portfolio grew by 8% YoY led by 20% YoY growth in micro finance institution (24% share of AUM).

MFI reported deterioration in asset quality as gross non performing asset stood at 3.6% versus 2.5% QoQ; however MFI book reported profitability as against loss during corresponding quarter last year.

We need to watch out for recovery in MFI portfolio in H2 FY22.

Click on the attachment to read the full report:

IDBI Capital Manappuram Finance Q1FY22 Result Update.pdf

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