Gold loan providers surge on RBI report proposals

Thu Jan 3, 2013 12:36pm IST

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008. REUTERS/Parth Sanyal/Files

Gold jewellery is on display at a jewellery showroom in Kolkata March 6, 2008.

Credit: Reuters/Parth Sanyal/Files

Related Topics

Stocks

   

Reuters Market Eye - Shares in gold loan providers such as Manappuram Finance soar 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.

"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 up 9 percent, while Manappuram Finance (MNFL.NS) rises 16 percent.

Shares in Titan Industries, which makes gold jewellery, are down 1 percent on concerns over rising costs after the government says it will make importing gold costlier.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Xi's South Asia Visit

REUTERS SHOWCASE

Economic Pulse

Economic Pulse

Weak industry and stubborn inflation hinder India's economic recovery.  Full Article 

Lipitor Lawsuit

Lipitor Lawsuit

Pfizer, Ranbaxy win dismissal of lawsuit over generic Lipitor.  Full Article 

Losing Glitter

Losing Glitter

India's love affair with gold may be over, as prices slide.  Full Article 

Factory Data

Factory Data

China Aug factory output growth near six-year low.  Full Article 

New Ford Models

New Ford Models

Ford to launch four new car models in India over 18-20 months.  Full Article 

Sales Forecast

Sales Forecast

Honda India two-wheeler unit sees FY15 sales rising more than a fifth.  Full Article 

Dispute Resolved

Dispute Resolved

Airbus gets Qatar A380 okay, but questions on A320 test.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage