IIFL Finance, another gold loan player, slipped 2.55% to Rs 325.10 lost 8.48% to Rs 305.5 on BSE. IIFL Finance, another gold loan player, slipped 2.55% to Rs 325.10 lost 8.48% to Rs 305.5 on BSE. IIFL Finance, another gold loan player, slipped 2.55% to Rs 325.10 lost 8.48% to Rs 305.5 on BSE. Shares of gold loan financing firms such as Muthoot Finance, Manappuram Finance and IIFL Finance curbed losses on Wednesday after RBI Governor Sanjay Malhotra clarified that he never said the central bank will tighten norms on loans against gold. Earlier in the day, Muthoot Finance, Manappuram Finance and IIFL Finance shares slipped up to 12% after Malhotra said during the RBI policy that the central bank would soon issue comprehensive guidelines on loans against gold.
“The draft guidelines in this regard are being issued for public comments,” the RBI said during its Monetary Policy Committee (MPC) review.
Muthoot Finance shares were trading 6.61% lower at Rs 2142.30 against the previous close of Rs 2294.05 on BSE. Market cap of the firm slipped to Rs 85,806 crore. Earlier, the stock slipped 12% intraday on BSE.
Similarly, Manappuram Finance stock too plunged 1.75% to Rs 224.90 on BSE. Market cap of the firm fell to Rs 19,053 crore. Earlier, the Manappuram Finance stock plonged nearly 3% to Rs 221.75.
IIFL Finance, another gold loan player, slipped 2.55% to Rs 325.10 lost 8.48% to Rs 305.5 on BSE. Market cap of the firm fell to Rs 13,810 crore. The stock hit an intraday low of Rs 305.55, immediately falling after the RBI policy.
For IIFL Finance, gold loan business constitutes 21% of total portfolio while for Manappuram and Muthoot Finance, it stands at 50% and 98%, respectively.
By January 2025, gold loans issued by banks increased by 76% year-on-year, with monthly growth rates exceeding 50% since September 2024. This rapid expansion has prompted the RBI to enforce stricter conditions on borrowers.
Many banks are now requiring full repayment before extending loan tenures, rechecking gold purity during renewals, and imposing additional fees for extensions. Furthermore, the practice of allowing same-day loan rollovers by simply paying interest is being curtailed, reflecting a shift towards more stringent lending practices.