Page 4 - Gold Loans

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

Cross-check with multiple lenders for accurate valuation of gold loan

For fairer assessment, select a lender that uses an external assayer

Fairfax India agrees to give IIFL Finance up to $200 mn liquidity support

NBFC's stock falls another 20% after RBI bars it from disbursing gold loans

IIFL Finance slumps 20% post RBI ban on sanctioning, disbursing gold loans

he RBI observed deviations in assaying and certifying purity and net weight of the gold at the time of sanctioning loans and at the time of auction upon default

Here's why IIFL Finance investors may have terrible Tuesday

The RBI found breaches in the loan-to-value ratio, significant disbursements and collections of loan amount in cash

RBI bars IIFL Finance from sanctioning and disbursing gold loans

RBI has instituted a special audit and the restrictions will be reviewed after the completion of the audit

RBI increases monetary ceiling of gold loans to Rs 400,000 for UCBs

The RBI on Friday announced the increase in the monetary ceiling of gold loans that can be granted under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh for UCBs

Loan sanctions through NBFCs slip sharply to 5.7% in June quarter

Sequentially, the sanctioned shrunk by 20.3 per cent over the quarter ended March 2023 (Q4FY23), data from Finance Industry Development Council (FIDC)-CRIF showed

Only 21 tonnes mobilised under gold monetisation scheme in 8 years

Gold loan market expected to shift to organised sector: WGC report

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

Loan closure to KYC norms: What RBI panel's suggestions mean for you

Proposals will improve banking for customers; make lenders be mindful of how they sell products

Indel Money to raise Rs 100 cr via secured non-convertible debentures

Indel Money Limited, a non-bank lender focussed on gold loan, on Thursday said it will raise Rs 100 crore through secured non-convertible debentures (NCDs). The NCD issue of face value of Rs 1,000 each will open on June 6 and close on June 19, the lender said in a release. "The issue includes a base issue size for an amount of up to Rs 50 crore with an option to retain oversubscription up to Rs 50 crore aggregating up to Rs 100 crore," it said. The debentures will be issued for a tenure ranging from 400 days to 72 months with coupon rates of up to 12.25 per cent per annum, the company said, adding that the issue is rated as BBB+/Stable by Crisil Ratings Ltd. "Increased revenue, profitability and visibility are the factors that drive the branch network. With this issue, we aim to expand our sources of funds," said Umesh Mohanan, Executive Director and CEO, Indel Money. Indel Money earlier raised Rs 100 crore through NCDs in May 2022. It also plans to raise around Rs 300 crore thro

Stringent rules for education loans turn parents towards gold loans

The recent surge in gold prices has made the yellow metal shinier as it fetches more funds for borrowers. Significantly, gold prices shot to Rs 60,000 per 10 grams from about Rs 50,000 a year ago

Manappuram posts 58% jump in profit on healthy gold loan business

The company's interest income jumped 23% to 17.14 billion rupees, while expenses rose a comparatively smaller 8.3%

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

CSB Bank net inches up 5%; gold loans share over 45% of total assets

The Kerala-based mid-sized lender CSB Bank (formerly Catholic Syrian Bank) on Monday reported a muted 5 per cent growth in net profit to Rs 156 crore despite record margins and a 26 per cent rise in advances for the quarter to December. Led by a hefty 51 per cent jump in gold loans, its total advances grew 26 per cent to Rs 18,456.70 crore, while deposits rose 19 per cent to Rs 22,664 crore. CSB Bank has over 45 per cent of its assets in gold loans. During the reporting quarter, its gold loan book soared 51 per cent to Rs 8,780.30 crore from Rs 5,825.50 crore a year ago, the company said. It's very high gold loan exposure, which works out to be 45.4 per cent of its overall loan assets, giving the lender an industry high 5.8 per cent net interest margin (up marginally on-year), which the managing director and Pralay Mondal said is not sustainable as the bank will have to offer better pricing to its depositors going forward. This record high margin pushed up its core net interest in

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

Intense competition may shrink margins of gold loan firms, says S&P

Manappuram, Muthoot not facing refinancing challenge yet

Ujjivan to enter gold loan segment soon; to offer auto loans to customers

The Bengaluru-based microfinancier-turned-small finance bank is also expecting to hit over 30 per cent this fiscal and take its loan book to around Rs 25,500 crore

Canara Bank crosses Rs 1 trn mark for outstanding gold loan book in June

Canara Bank is pushing this business in Eastern region and two metropolitan areas - Mumbai and Pune