Muthoot Finance's third quarter net profit fell 20.7 percent year-on-year to Rs 154 crore, dented by lower net interest income.
Net interest income of the gold loan financing company slipped 6.9 percent to Rs 529 crore in the quarter ended December 2014 from Rs 568 crore in same quarter last fiscal.
In an interview to CNBC-TV18 (post results) George Alexander Muthoot, Managing Director of the company, however, says profits should be driven by AUM (assets under management) going forward and NII should be consistent hereafter.
According to Muthoot, net interest margin of the company declined sequentially to 9.5 percent in Q3FY15 compared to 10.17 percent due to high competition. "We should see net interest margins stabilising," he says.
Gross non-performing assets as a percentage of gross advances stood at 1.96 percent and net NPA at 1.5 percent for the quarter. He says all NPAs will be recovered in a few months.
Total income from operations declined 10.7 percent on yearly basis to Rs 1,067.6 crore from Rs 1,196 crore during the same period.
At 12:55 hours IST, the stock was quoting at Rs 226.35, down Rs 6.10, or 2.62 percent on the BSE.
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