Business Standard

Gold loan firms' shares gain 5% on higher LTV ratio hope

BS Reporter
Shares of gold loan companies gained around five per cent on Monday, amid talks that the Reserve Bank of India may relax norms pertaining to their loan-to-value (LTV) ratio. The central bank had tightened norms for lending against gold jewellery last month. It had maintained that the LTV ratio for non-banking finance companies (NBFCs) offering loans against the yellow metal will remain capped at 60 per cent. While there was no immediate confirmation that the LTV ratio will be increased, according to market players, gold loan companies' shares gained on Monday on expectations of such a move. Shares of Muthoot Finance increased by 4.9 per cent and closed at Rs 104.25 on the NSE, while rival Manappuram Finance's stock gained five per cent and ended at Rs 15.75 on the NSE.
 

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First Published: Oct 29 2013 | 12:44 AM IST

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