Muthoot Finance reported its Q3 earnings with a muted loan growth and deteriorating asset quality. However, the company reported robust net interest margins (NIMs).
In an interview to CNBC-TV18, George Alexander Muthoot, MD of the company discussed the company's Q3 performance.
Muthoot said that the company has made a conscious decision to recover or meet customers in their homes and recover the loans or make the customers to renew the loans instead of auctioning.
He further said that the customers have two options; either to renew the loan or close the loan account instead of auctioning.
“Our non-performing asset (NPA) have gone up a tad. Today it is about 4.9 percent but because of this the realisations are better, the interest collections are better,” he said.
On gold loan front, he said it has grown by about 5 percent in the last 9 months and I am sure by the end of the year it will reach about 11-12 percent, said Muthoot.
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