Page 4 - Gold Loan

Special audit starts at IIFL Fin after RBI restricted gold loan sanction

RBI's inspection had indicated a lack of adherence to the standard auction process and a lack of transparency in charges being levied on customer accounts

IIFL Finance to raise $152 million via share sale amid ban on gold loans

IIFL's gold loans under management stood at 24,692 crore rupees as of December 31

Margin concerns largely priced in for Muthoot, Manappuram Finance

Three NBFCs in gold financing have seen AUM growth on a quarter-on-quarter (Q-o-Q) basis for the gold segments over the last three quarters

Finmin asks PSU banks for comprehensive review of their gold loan portfolio

The finance ministry has directed all state-owned banks to review their gold loan portfolio as instances of non-compliance with regulatory norms have been noticed by the government. The Department of Financial Services (DFS) in a communication addressed to heads of public sector banks has asked them to look at their system and processes related to gold loan. "We have asked banks to undertake comprehensive review of the gold loan business," Financial Services Secretary Vivek Joshi told PTI. A directive in this regard was issued last month advising them to fix anomalies relating to collection of fees and interest and closure of gold loan accounts. The letter flagged various concerns, including disbursement of gold loans without requisite gold collateral, anomalies regarding collection of fees and repayment in cash. The DFS urged banks to undertake a thorough review of the last two-year period from January 1, 2022 to January 31, 2024 so as to ensure that all gold loans were disburse

Rating agency ICRA places IIFL Finance's long-term ratings under watch

Flags negative implications; may impact profitability

IIFL Finance's lending partners mull options to grow gold loan book

This follows the Reserve Bank of India's (RBI's) restrictions on non-banking financial companies (NBFCs) from engaging in gold loan business

RBI prohibits IIFL Finance from sanctioning, disbursing gold loans

The Reserve Bank on Monday barred IIFL Finance with immediate effect from sanctioning or disbursing gold loans after certain material supervisory concerns were observed in its gold loan portfolio. IIFL Finance can, however, continue to service its existing gold loan portfolio through the usual collection and recovery processes, the RBI said in a statement. "The RBI has today...directed IIFL Finance Ltd to cease and desist, with immediate effect, from sanctioning or disbursing gold loans or assigning/ securitising/ selling any of its gold loans," it said. The RBI said an inspection of the company was carried out by it with reference to IIFL's financial position as of March 31, 2023. "Certain material supervisory concerns were observed in the gold loan portfolio of the company, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default...," it noted. These practices, apart from be

Muthoot Finance Q3 results: Net profit up 23% owing to higher gold prices

The company posted a consolidated net profit of Rs 1,145 crore during the third quarter of 2023-24

Manappuram Finance Q3 results: Profit up 46% at Rs 573 cr on strong demand

The October-December quarter included some key festivals that typically spur demand. Most Indian lenders have reported double-digit loan growth for the period

Gold will remain very important for next 2-3 years: CSB Bank MD Mondal

If you look at it, gold has exactly grown in line with our bank growth, bank has grown by 23 per cent and gold has also grown by 23 per cent on a Y-o-Y basis, Pralay Mondal said

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

Monetary policy: UCB gold loan limit, CoF tokenisation facility, and more

RBI has allowed NBFCs in the middle and base layer to offset their exposures with eligible credit risk transfer instruments

RBI doubles bullet repayment gold loan limits for urban co-op banks

The Reserve Bank of India on Friday announced doubling the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks to Rs 4 lakh. "It has been decided to increase the existing limit for gold loans under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh in respect of Urban Cooperative Banks (UCBs) who have met the overall target and sub-targets under the Priority Sector Lending (PSL) as on March 31, 2023," RBI Governor Shaktikanta Das said. A bullet repayment scheme is one where a borrower repays interest and the principal amount at the end of a loan tenure without worrying about repayment during the loan tenure. Das, who had a meeting with top brass of UCBs recently, said the measure is in line with the RBI's earlier announcement of providing "suitable incentives" to UCBs that have met the prescribed PSL targets, wherein a lender is mandated to devote a certain part of its overall lending for the marginalised sector. Speaking after announcin

Banks ask RBI to frame policy for silver loans similar to gold metal loans

Under the current Gold Monetisation Scheme, 2015, banks can give gold loans to jewellery exporters or domestic makers. The loan, equivalent to the value of gold borrowed, needs to be repaid in rupees

Muthoot Finance misses Q4 profit view amid weak macroeconomic environment

The gold loan industry has continued to benefit from a surge in the metal's prices amid an increase in safe-haven investment in gold due to market volatility

Gold spot of bother: Little sparkle for financiers despite tailwinds

Increased competition, lower spreads, moderate growth are among hurdles to overcome

Record gold price may not bring back sheen in Muthoot, Manappuram: Analysts

Analysts believe the continued aggression of banks and fintechs would make gold loan NBFCs pivot their business models to lower spreads and margin

SBI personal banking loan book up Rs-5 trn mark, helped by digital push

Next Rs one trillion of non-home retail loans by Q3FY24

DBS Bank India seeks three-fold jump in gold loan portfolio in 5 yrs: Exec

Lender's amalgamation with Lakshmi Vilas Bank expanded its reach in South India

Cash-for-gold lender Muthoot Finance joins trend shunning new dollar debt

Muthoot Finance Ltd. is extending a trend in emerging Asia that's dragged down bond issuance in the US currency to its lowest since 2015