The board of directors of Muthoot Finance on Saturday (18 July) decided to defer the proposal to sub-divide the equity shares of the company to a future date.

"The board discussed in depth the pros and cons of the stock split proposal. Though, the share price movement over the last few months and financial indicators were found to be ideal for a stock split proposal at the current scenario, board unanimously decided to defer the proposal to sub-divide the equity shares to the company to a future date," the company said in a regulatory filing.

The decision to defer the proposal was taken considering the economic uncertainties that are currently prevailing due to COVID-19 outbreak and related slowdown in the economy. Future update on this matter will be intimated in due course, it added.

The NBFC's consolidated net profit jumped 52.4% to Rs 835.78 crore on 26.1% rise in total income to Rs 2,633.58 crore in Q4 March 2020 over Q4 March 2019.

The scrip surged 6.25% to Rs 1202.80 on Friday. Muthoot Finance is the largest gold financing company in India in terms of loan portfolio.