Muthoot Finance Q4 Review - Robust Gold Loan Growth Maintained; Better Asset Quality YoY: IDBI Capital
A branch of Muthoot Finance Ltd. in New Delhi. (Photographer: Anindito Mukherjee/Bloomberg).

Muthoot Finance Q4 Review - Robust Gold Loan Growth Maintained; Better Asset Quality YoY: 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

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.

Click on the attachment to read the full report:

IDBI Capital Muthoot Finance Q4FY21 Result Update.pdf

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