Gold loan providers surge on RBI report proposals
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.
- Tweet this
- Share this
- Digg this
- UPDATE 3-Seven arrested internationally in $1.6 million StubHub fraud
- Seven arrests made in $1.6 million StubHub cyberfraud case |
- UPDATE 2-Concordia finally heads for scrapyard after massive salvage operation
- TransAsia Airways stocks plunge after plane crashes in landing
- UPDATE 3-Ex-Jefferies trader gets 2 years in prison in fraud case
India is set to offer Nepal a landmark pact to help develop its huge hydro-electric power potential as the South Asian giant takes another step to re-assert influence among smaller neighbours where China has been forging closer ties. Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article