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Manappuram Finance Q2 net drops 20%

Kerala-based gold loan company Manappuram Finance has declared a 20% fall in net profit for the second quarter in the current financial year against the same peroid last year.

Kerala-based gold loan company Manappuram Finance (MAFIL) has declared a 20% fall in net profit for the second quarter in the current financial year against the same peroid last year. Net profit for the quarter ended September 30 stood at R107.70 crore as against R135.30 crore in the second quarter last fiscal. Net profit for the quarter ended June 30 of current fiscal stood at R157.77 crore.

The first half of the current financial year has been extremely challenging for gold loan NBFCs on account of a series of regulatory steps by RBI due to a rapid growth of the sector and fears of a concentration risk. In April 2012, RBI had asked banks to reduce the exposure to 7.5% of their capital funds from the existing 10%. The move by RBI came one month after it gave directions to NBFCs in the business to restrict the loan size to 60% of the value (called loan-to-value) of gold jewellery. RBI has also barred them from granting advances against bullion, primary gold and gold coins.

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First published on: 09-11-2012 at 01:44 IST
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