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
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- RBI says all companies must apply 2-step payments for credit cards
- First trucks from aid convoy to Ukraine cross back into Russia
- Indians keep faith with Modi, best hope for economy - poll
- Merkel says tightening Ukraine-Russian border is key to peace deal
The Securities and Exchange Board of India (SEBI), India's capital markets regulator, has ordered property developer PACL Ltd to return at least $8.1 billion raised from retail investors after finding the company had failed to register its land investment scheme. Full Article
India to hike iron ore royalty, miners may struggle to pass on extra cost. Full Article