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News: Manappuram Finance delivered mixed Q2FY25 performance, with moderation in AUM growth at 17.4% YoY (1.7% QoQ) to ₹45,716 crore. Gold loan grew 17.1% YoY (3% QoQ), vehicle finance portfolio expanded by 54% YoY (6.8% QoQ) while home finance grew at 29.6% YoY (6.6% QoQ). Microfinance AUM, however, saw a marginal decline of 1.3% QoQ to ₹12,149 crore, although impact of RBI ban on lending fresh loan will translate in Q3 and Q4. PAT remained flattish at ₹572 crore, up 2% YoY (2.8% QoQ), due to elevated credit costs. Asset quality witnessed deterioration with GNPA ratio on a standalone basis rising to 2.42%, up from 1.96% in the previous quarter.
Views: Management remains optimistic about achieving 10%-18% growth in gold loan portfolio over the fiscal year. While micro finance is halted post RBI review, management has made necessary adjustments and is awaiting inspection to resume.
Impact: Neutral