Kolkata: Muthoot Microfin has suffered a Rs 401 crore net loss in the fourth quarter due to over 10 times jump in provisions against bad loans while it breached financial covenants relating to borrowing outstanding.
The Kerala-headquartered microfinance lender earned a net profit of Rs 120 crore in the year ago period. The sector slipped into an asset quality crisis from the first quarter of FY25.
For the full financial year ending March 31, 2025, the company suffered a net loss of Rs 223 crore as compared with Rs 450 crore of net profit in the preceding fiscal. Pre-provision operating profit for the year stood at Rs 868 crore, up 15% year-on-year.
The company's total income for the quarter stood lower at Rs 556 crore against Rs 645 crore in the year-ago period.
Its gross non-performing assets ratio soared to 4.84% at the end of the reporting period from 2.29% a year back. The Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance contributed to fluctuations in portfolio performance, the company said in a regulatory filing to stock exchanges.
Provisions against bad loans during the quarter stood at Rs 652 crore against Rs 62 crore in the year-ago period.
"There has been instances of breach covenants relating to borrowings outstanding during the quarter and the year ended as at 31 March 2025," the company said in a regulatory filing to stock exchanges.
The lender's gross loan portfolio rose 1.3% year-on-year to Rs 12,357 crore while borrower base grew by 2.3% to 34.3 lakhs.
"With a conscious decision to moderate disbursements for the fiscal year, our emphasis remained on conserving tier-1 capital, maintaining strong liquidity buffers, resolving asset quality challenges, and steadily improving collection efficiency," Sayeed said.
The Kerala-headquartered microfinance lender earned a net profit of Rs 120 crore in the year ago period. The sector slipped into an asset quality crisis from the first quarter of FY25.
For the full financial year ending March 31, 2025, the company suffered a net loss of Rs 223 crore as compared with Rs 450 crore of net profit in the preceding fiscal. Pre-provision operating profit for the year stood at Rs 868 crore, up 15% year-on-year.
The company's total income for the quarter stood lower at Rs 556 crore against Rs 645 crore in the year-ago period.
Its gross non-performing assets ratio soared to 4.84% at the end of the reporting period from 2.29% a year back. The Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance contributed to fluctuations in portfolio performance, the company said in a regulatory filing to stock exchanges.
Provisions against bad loans during the quarter stood at Rs 652 crore against Rs 62 crore in the year-ago period.
"There has been instances of breach covenants relating to borrowings outstanding during the quarter and the year ended as at 31 March 2025," the company said in a regulatory filing to stock exchanges.
The lender's gross loan portfolio rose 1.3% year-on-year to Rs 12,357 crore while borrower base grew by 2.3% to 34.3 lakhs.
"With a conscious decision to moderate disbursements for the fiscal year, our emphasis remained on conserving tier-1 capital, maintaining strong liquidity buffers, resolving asset quality challenges, and steadily improving collection efficiency," Sayeed said.
You may also like
Shaun Murphy flies off the handle as Zhao Xintong feelings made crystal clear
Argos' surprise iPhone sale could convince fans to upgrade as £200 is cut from price
Owaisi seeks international campaign against TRF
'I spoke to Boris Becker about Novak Djokovic hiring Andy Murray - this is what he said'
KIYG 2025: Bihar, Jammu & Kashmir strike emotional gold (round-up)
