RBI's Crackdown on Gold Loan Practices Hits Lenders

CosmicTaco · 2024-10-02T11:20:55.999520+05:30

- **RBI** has called for corrective measures in gold loan practices within three months. - **Muthoot Finance** fell 3.9% and **Manappuram Finance** declined 1.9% due to concerns over **ROAs**. - Issues include improper valuation, LTV breaches, and inadequate governance with fintechs. - **IIFL Finance** rose nearly 0.5%, while private banks ended flat or lower. - Analysts see this as a good entry point for Muthoot Finance despite regulatory concerns. Source: [The Economic Times](https://economictimes.indiatimes.com/markets/stocks/news/gold-loan-companies-slip-as-rbi-orders-corrective-measures-for-lapses/articleshow/113867489.cms), [Business News India](https://www.businesstoday.in/personal-finance/news/story/rbi-demands-gold-loan-lenders-address-irregular-practices-within-3-months-448334-2024-10-02), [Mint](https://www.livemint.com/industry/banking/gold-loans-asset-class-fintechs-rbi-warning-11727784852546.html)

RBI has called for corrective measures in gold loan practices within three months.
Muthoot Finance fell 3.9% and Manappuram Finance declined 1.9% due to concerns over ROAs.
Issues include improper valuation, LTV breaches, and inadequate governance with fintechs.
IIFL Finance rose nearly 0.5%, while private banks ended flat or lower.
Analysts see this as a good entry point for Muthoot Finance despite regulatory concerns.

Source: The Economic Times, Business News India, Mint