Gold loan financiers get a thumbs up from stock market investors

RBI's latest move raising risk weights on loans is likely to hurt sentiment towards Muthoot and Manappuram

The stock market has reacted positively to the July-September quarter (Q2) results of the gold-focused NBFCs, Muthoot Finance, and Manappuram Finance with both stocks recommended and gaining post-results.

Manappuram declared consolidated assets under management (AUM) growth of 27 per cent year-on-year (Y-o-Y) (5.1 per cent quarter-on-quarter or Q-o-Q) to Rs 38,950 crore. Net interest income (NII) saw a margin expansion of 24 basis points (bps) Q-o-Q to 15.44 per cent.

NII stood at Rs 1,467 crore (up 6.5 per cent Q-o-Q and up 25.6 per cent Y-o-Y). 

The operating profit was at Rs 866 crore (up 8.0 per cent Q-o-Q