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.
Muthoot Finance shares were up 9 percent, while Manappuram Finance rose 16 percent. Reuters
?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
Firstpost encourages open discussion and debate, but please adhere to the rules below, before posting. Comments that are found to be in violation of any one or more of the guidelines will be automatically deleted:
Personal attacks/name calling will not be tolerated. This applies to comments directed at the author, other commenters and other politicians/public figures
Please do not post comments that target a specific community, caste, nationality or religion.
While you do not have to use your real name, any commenters using any Firstpost writer's name will be deleted, and the commenter banned from participating in any future discussions.
Comments will be moderated for abusive and offensive language.
ryan madson louisiana primary syracuse basketball chipper jones chipper jones dancing with the stars cast mickael pietrus
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.