The South now comprises 50 percent of the loan portfolio as the company has made inroads into Telangana and Andhra.
Total income rose 18 percent from Rs 565 crore to Rs 667 crore, while net interest income increased by 18 percent from Rs 338 crore to Rs 399 crore.
Thomas Muthoot, the managing director, said, “Despite the ongoing industry challenges, we delivered a solid performance this quarter, achieving a 15.2 percent on-year growth in loan portfolio at Rs 12,518 crore. Our robust underwriting standards have helped us preserve asset quality, with gross NPA of 2.70 percent and net NPA of 0.97 percent which are only marginally up.”
Sadaf Sayeed, the chief executive, said the company has seen net disbursements rise to Rs 2,674 crore in the September quarter, up from Rs 2,204 crore in the previous quarter and returning to similar levels as last year.
“We expect growth to reaccelerate in coming quarters with usual seasonal upswing coupled with our focus on harnessing existing customers and strengthening our core geographies,” Sayeed said, adding their “asset quality remains stronger than the peers thanks to the robust underwriting and collection practices.” This increase in provisioning has resulted in creating Rs 153 crore surplus provision.