Latest News | Muthoot Capital Logs in Flat Net Income in Q1

Mumbai, Jul 29 (PTI) Auto-loan focused shadow banking entity Muthoot Capital Services on Wednesday reported a flat net income of Rs 13.5 crore for the June quarter, despite setting aside Rs 32-crore additional provisioning for the pandemic.

The company had posted a net income of Rs 13.6 crore in the year-ago period.

Also Read | PM Narendra Modi Welcomes New National Education Policy 2020, Says It Will Transform Millions of Lives in the Times to Come.

Total income of the only listed entity from the diversified Muthoot Pappachan Group declined marginally to Rs 131.2 crore from Rs 144 crore, as it could not disburse the mainstay two-wheeler loans that declined to Rs 16.5 crore due to the lockdowns, while total disbursements plunged to Rs 17 crore from Rs 487 crore.

Total assets under management declined to Rs 2,474 crore, including the assigned portfolio of Rs 45 crore, from Rs 2,760.3 crore, said its managing director Thomas George Muthoot.

Also Read | Another Microsoft Surface Duo Foldable Smartphone Image Released Online.

The company is expecting better days as collections have gone up from 33 per cent of the normal in April to 70 per cent in June and further improving in July.

To avoid any negative surprises on the asset quality side from the pandemic, the company has provided for an enhanced provisioning of Rs 50 crore, of which Rs 18 crore will be set aside in the September quarter. It has already set aside Rs 32 crore in the June quarter.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)