Shares of gold loan companies like Muthoot Finance and Manappuram Finance have frozen upper circuit of 20% each after the Reserve Bank of India (RBI) has eased the norms for extending loans against gold jewellery as collateral.
Now, non-banking finance companies (NBFCs) can give a loan up to 75% of the gold value; the previous limit was 60%, the Business Standard report suggests.
The loan-to-value ceiling had been raised after moderation in the growth of gold loan portfolios of NBFCs in the recent past, RBI stated on Wednesday.
Among the individual stocks, Muthoot Finance has soared 20% at Rs 129 on the BSE. At 0920 hours, a combined 361,900 shares have changed hands and there are pending buy orders for 1.3 million shares on the BSE and NSE.
Manappuram Finance too, locked in upper circuit of 20% at Rs 18.15 on the BSE. As many as a combined 5.88 million shares have already changed hands and there are pending buy orders for 10.17 million shares on both the exchanges.
Now, non-banking finance companies (NBFCs) can give a loan up to 75% of the gold value; the previous limit was 60%, the Business Standard report suggests.
The loan-to-value ceiling had been raised after moderation in the growth of gold loan portfolios of NBFCs in the recent past, RBI stated on Wednesday.
Among the individual stocks, Muthoot Finance has soared 20% at Rs 129 on the BSE. At 0920 hours, a combined 361,900 shares have changed hands and there are pending buy orders for 1.3 million shares on the BSE and NSE.
Manappuram Finance too, locked in upper circuit of 20% at Rs 18.15 on the BSE. As many as a combined 5.88 million shares have already changed hands and there are pending buy orders for 10.17 million shares on both the exchanges.
