Muthoot Finance hits the roof
By
Research Desk
about 10 years ago
Muthoot Finance, the top gainer on the BSE currently has breached the 20% upper circuit the moment it opened for trade today morning and is frozen at Rs.129.10.
The stock hit the roof after the Govt eased lending on gold norms. RBI raised the cap on Loan to Value of Gold (LTV) proportion from the current 60% to 75%. This means a person can now get Rs.75 for gold worth Rs.100 instead of Rs.60 earlier. The mandate of NBFCs to disburse loans of Rs 1 lakh or above by cheque remains.
This is a big booster for Muthoot Finance and Manappuram Finance as it means their loan books, which have shown a de-growth for some time now can bounce back to some extent.