Muthoot Finance, which has posted back-to-back decline in profits in the last two quarters, said it is set to make a comeback having discontinued its low-interest schemes.
The country’s largest gold loan company in terms of loan portfolio expects a 10 per cent business growth in current fiscal, George Alexander Muthoot, Managing Director, Muthoot Finance, said.
The non-banking finance company (NBFC) posted a decline of 10 per cent in its net profit from a year ago period at Rs 901.60 crore in quarter ended September 2022.
In the preceding quarter ended June 2022, it witnessed a decline of 15.7 per cent in its net profit year on year at `825 crore.
“If you look at quarter-on-quarter, last quarter versus this quarter, there is an increase (of 9.3 per cent) in net profit. If you are comparing last year same quarter, yes I would say there is a 10 per cent decline. This has happened because two quarters back, we had started the low interest scheme as trial basis. We did it for one or two quarters and then we stopped it.
“The impact of that low-interest scheme is what we saw as decline in net profit in last quarter and this quarter also,” Muthoot told PTI in an interview.
