Muthoot Finance posted the lowest level of net interest margins in the last six quarters which impacted return ratios. Loan growth, however, remained steady.
Speaking at length about the results, George Alexander Muthoot, MD of the company, said that the average cost of funds increased in Q3 from 8.7 percent to 9.3 percent.
He further said that it will take 2-3 months for yields to catch up on the loan book.
Talking about growth, he said, “We have already grown by 13 percent up to now so we should end by little more than 15 percent growth in the assets under management (AUM) in gold loan by the end of the year."
First Published: IST