Manappuram Finance has dipped 8% to Rs 14.70, its lowest level since July 2009 on BSE in early morning deals, after reporting a loss of Rs 141 crore in the fourth quarter ended March 31, 2013 due to rising non-performing assets and lower income from operations. The non-banking finance company (NBFC) had registered a profit of Rs 187 crore in a year ago quarter.
Income from operations declined sharply by 61% to Rs 312 crore from Rs 791 crore in January-March 2012 after the Reserve Bank of India imposed a 60% cap on the loan-to-value ratio (LTV) of gold loans last year.
LTV refers to the amount NBFCs can lend against gold, implying that for gold worth Rs 100 offered as collateral, lenders can give loans up to Rs 60 and not more. There was previously no such limit.
Meanwhile, the provisions for bad and doubtful loans rose to Rs 61.95 crore, from a mere Rs 2.23 crore in Q4 last year.
The stock opened at Rs 15.70 and has seen a heavy activity on the counter. A combined 4.63 million shares already changed hands till 1049 hours against an average 2.59 million shares that were traded daily in past two weeks on BSE and NSE.
Income from operations declined sharply by 61% to Rs 312 crore from Rs 791 crore in January-March 2012 after the Reserve Bank of India imposed a 60% cap on the loan-to-value ratio (LTV) of gold loans last year.
LTV refers to the amount NBFCs can lend against gold, implying that for gold worth Rs 100 offered as collateral, lenders can give loans up to Rs 60 and not more. There was previously no such limit.
Meanwhile, the provisions for bad and doubtful loans rose to Rs 61.95 crore, from a mere Rs 2.23 crore in Q4 last year.
The stock opened at Rs 15.70 and has seen a heavy activity on the counter. A combined 4.63 million shares already changed hands till 1049 hours against an average 2.59 million shares that were traded daily in past two weeks on BSE and NSE.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%