Manappuram Fin up 6% as RBI lifts restrictions on arm Asirvad Micro Finance

Reserve Bank of India (RBI) lifted restrictions on all four non-banking financial companies (NBFC) imposed in October for charging exorbitant interest rates to the borrowers

Manappuram Finance shares gained 6.3 per cent in Thursday's trade on BSE, logging an intraday high of Rs 191.5 per share. The buying in the stock came after the Reserve Bank of India (RBI) lifted restrictions imposed on Manappuram Finance arm Asirvad Micro Finance.

 

Around 9:34 AM, Manappuram Finance shares were up 5.47 per cent at Rs 189.9 per share on BSE. In comparison, the BSE Sensex was down 0.32 per cent at 77,899.51. The market capitalisation of the company stood at Rs 16,065.33 crore. The 52-week high of the stock was at Rs 230.25 per share and the 52-week low was at 138.4 per share. 

 

"We are pleased to inform you that the Reserve Bank of India, vide its letter dated January 8, 2025, has lifted the restrictions imposed on Asirvad Micro Finance Limited with respect to sanction or disbursal of loans with immediate effect," the filing read. 

 

“…having satisfied itself based on companies’ submissions, and in view of their adoption of revamped processes, systems, and the companies’ commitment to ensuring adherence to the regulatory guidelines on an ongoing basis, especially for ensuring fairness in the loan pricing, the RBI has decided to lift the afore-mentioned restrictions placed on both, Asirvad Micro Finance and DMI Finance, with immediate effect”, RBI said in a statement.

 

The central bank lifted restrictions on all four non-banking financial companies (NBFC) imposed in October for charging exorbitant interest rates to the borrowers.

 

In October, RBI imposed sanctions on Asirvad Microfinance, Arohan Financial Services, DMI Finance, and Flipkart co-founder Sachin Bansal’s Navi Finserv.

 

The action was on a backdrop of material supervisory concerns observed in the pricing policy of these companies in terms of their weighted average lending rate (WALR) and the interest spread charged over their cost of funds, which are found to be excessive and not in adherence with the regulations. 

 

Manappuram Finance Ltd. is a NBFC in India, primarily known for its gold loan business. It offers a range of financial services including gold loans, personal loans, microfinance, business loans, insurance, and foreign exchange services. The company provides quick loans against gold jewelry, catering to individuals and businesses in need of immediate liquidity without requiring extensive documentation. Manappuram is also involved in the retail sale of gold coins and bullion. 

 

In the past one year, Manappuram Finance shares have gained 0.30 per cent against Sensex's rise of 9.5 per cent.