Gold finance companies up; RBI allows them as banking correspondents

Shares of finance companies which provide loans against gold rally after the RBI on Tuesday allowed banks to engage non-deposit-taking non-banking finance companies as banking correspondents for financial inclusion.

Manappuram Finance Ltd surges 4.7% while Muthoot Finance Ltd gains 2.5%.

Working as banking correspondents provides a strong fee income opportunity for these non-deposit-taking lenders.