 "Manappuram Finance up 16% after RBI proposal on gold loans")
Shares in gold loan providers such as Manappuram Finance soared after an RBI report proposed increasing the loan-to-value, or LTV, ratio to 75 percent from 60 percent currently.
The ratio is an important tool that can vary the quantity of gold loans which a company can provide to customers.
[caption id=“attachment_576975” align=“alignleft” width=“380”]  Muthoot Finance shares were up 9 percent, while Manappuram Finance rose 16 percent. Reuters[/caption]
“The proposals to increase LTV and to use cheques for high-value transactions are positive, but a cap on lending rates and restrictions on NCD (non-convertible debentures) will affect gold-loan NBFCs’ profitability,” Kotak Securities said in a note.
Muthoot Finance shares were up 9 percent, while Manappuram Finance rose 16 percent.
Shares in Titan Industries, which makes gold jewellery, were down 1 percent on concerns over rising costs after the government said it will make importing gold costlier.
Reuters
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