Muthoot Finance Q4 Review - Robust Gold Loan Growth Maintained; Better Asset Quality YoY: IDBI Capital
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IDBI Capital Report
Muthoot Finance Ltd. reported strong growth in gold assets under management at 27% YoY versus 21% YoY (FY20) (32% YoY in Q3 FY21).
Overall assets under management grew by 24% YoY; management guided for 15% growth on conservative basis in FY22.
Profitability growth was lower at 22%.
Net interest income grew by 16% YoY led by decline in margins; while pre-provision operating profit grew by 24% YoY led by improvement in cost to income ratio (28% vs 33% YoY).
Provisions declined sequentially by 81% while up 131% YoY.
Stage III loan assets improved to 0.88% versus 1.30% QoQ, while company carries excess provision of Rs 2.95 billion in balance sheet.
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