Gold loan-focussed Non-Banking Financial Company (NBFC) Muthoot Finance Ltd on on Monday reported a 12.4 percent year-on-year (YoY) decline in net profit at Rs 901.6 crore for the third quarter ended December 31, 2022.

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In the corresponding quarter last year, the company posted a net profit of Rs 1,028.9 crore. CNBC-TV18 Polls had predicted a profit of Rs 866.6 crore for the quarter under review.

During the quarter, the net interest income (NII) declined by 9.6 percent to Rs 1,704.3 crore against Rs 1,886.1 crore in the corresponding period of the preceding fiscal. CNBC-TV18 Polls had predicted a net interest income of Rs 1,679.4 crore for the quarter under review.

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The consolidated loan assets under management (AUM) grew 7 percent YoY to Rs 65,085 crore in third quarter as against Rs 60,896 crore in same quarter last year. During the quarter, consolidated loan assets under management increased by 1 percent. The standalone loan assets under management increased to Rs 57,731 crore, up by 6 percent YoY.

George Jacob Muthoot, chairman of Muthoot Group, said the contribution of our subsidiaries to the overall consolidated AUM improved slightly to 12 percent and going ahead company expect the share of non-gold AUM to gradually rise.

George Alexander Muthoot, the company's managing director, said the company registered a YoY growth of 6 percent in loan assets and marginal QoQ growth in gold loans of less than 1 percent. Yield on loan portfolio witnessed a QoQ increase of 0.84 percent consequent to stoppage of very low rate teaser loans.

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Borrowing cost slightly rose to 8.13 percent due to the impact of general increase in the interest rates with banks MCLR being constantly revised and fresh NCDs being raised at higher rates. The return on assets for the quarter improved to 6.27 percent, George said.

(Edited by : Pradeep John)