Serving Under-served Rural And Semi-urban Markets
FY17 with profit after tax of Rs10 crore as against PAT of Rs6 crore. The company also acquired 100% stake in Muthoot Insurance Brokers Pvt Limited, an IRDA registered direct broker in insurance products. It generated a first year premium collection amounting to ₹70 crore during FY17, as against ₹48 crore during the previous year.
During FY17, the company increased its shareholding in the housing finance company Muthoot Homefin (India) Ltd from 79% to 88.27%. Its loan portfolio increased by ₹409 crore at ₹441 crore. Total revenue for FY17 stood at ₹24 crore as against Rs2 crore in FY16. It achieved a profit after tax of ₹2.87 crore during the FY17 as against ₹1.36 lakh.
During the year, the company increased its shareholding in the Sri Lankan subsidiary - Asia Asset Finance PLC. It increased its loan portfolio by 26% at LKR 866crore in FY17. The total revenue for FY17 stood at LKR 213crore as against LKR 139crore in FY16. It generated a profit after tax of LKR 28 crore during the year, as against previous year profit after tax of LKR 18 crore.
Being the industry leader, we have identified digitisation is need-based, which is current and future envisaged. We leave no stone unturned to ensure the best possible user experience to maintain and increase our high level of customer satisfaction. The company is encouraging online gold loan, direct credit to customers account, loading to prepaid cards for disbursementof loan. For repayment, the company is accepting payments through Webpay, Muthoot App, RTGS/NEFT/IMPS facility. We are also accepting cheques and drafts.
The subsidiariescontributed about 5% of the group assetsin FY17. The company is looking at increasing the share of subsidiaries to about 10% of the group assets in FY18 and subsequently to 20% by FY22. During FY17, the company witnessed 46% growth in net profit at ₹1180 crore, as against ₹810 crore in FY16. Retail loan AUM stood at ₹27,278crore, registering 12% growth in FY17.
Our capital adequacy ratio stood at 24.88% as on FY17, as against minimum CAR of 15% stipulated by the RBI. Being a non-deposit taking NBFC, the main source of our funds is NCDS issued to public/investors. During FY17, we made two NCD issues totaling Rs1,832 crore. During FY18, so far we have made an NCD issue for Rs1,969 crore. Recently, our NCD in April 2017, where we raised close to ₹2000 crore, was open for a period of one month but was oversubscribed and closed in just two days of its launch. This demonstrates very strong investor confidence for us. Going ahead, we expect our AUM to touch ₹45,000 crore in 5 years. We also plan to increase our concentration by venturing in new geographies in northern and westernregions through branch expansions. We are also looking into north-eastern region very closely. Also, in FY17 our average business per branch was ₹6.3 crore, which we expect it to increase to average of ₹15 crore per branch in the coming years. This will facilitate to achieve our AUM targets. We also are very keen on opportunities for diversifying our products.