KOLKATA: India’s largest gold loan company will be looking to raise up to Rs 5,000 crore by selling bonds in one or more tranches. The lender has reported a 22% rise in net profit for the March quarter.
The net profit for the quarter was Rs 996 crore compared with Rs 815 crore in the year ago period. Net interest income rose nearly 16% at Rs 1,830 crore over Rs 1,581 crore over the same period.
Demand for gold loans grew sharply last year as this provided short-term liquidity to individuals during the stressful last financial year. The gold loans also surged since other lenders went slow in personal loans.
Its loan assets grew 26% year-on-year to Rs 52,622 crore at the end of March from Rs 41,611 crore a year back. The company’s share price jumped about 8% to Rs 1414 on BSE after announcement of the earnings.
The board of the non-banking finance company on Wednesday also approved the appointment of George Jacob Muthoot as its chairman. He is one of the promoters of the company and younger brother of late chairman M G George Muthoot, who passed away on March 5.