Latest news with #MuthootFinance
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Business Standard
3 days ago
- Business
- Business Standard
Muthoot Finance soars 7% as FinMin seeks exemptions for gold loan norms
Shares of Muthoot Finance rose nearly 7 per cent on Friday after the government asked the Reserve Bank of India (RBI) to delay the implementation of the gold loan norms until January 2026 to ensure small borrowers are not affected. The non-banking financial company's (NBFC's) stock rose as much as 6.9 per cent during the day to ₹2,207 per share, the biggest intraday gain since February 13, 2025. The stock pared gains to trade 6.4 per cent higher at ₹2,200 apiece, compared to a 0.20 per cent decline in Nifty50 as of 11:30 AM. Shares of the company have risen 3.2 per cent this year, compared to a 5 per cent advance in the benchmark Nifty50. Muthoot Finance has a market capitalisation of ₹88,526.80 crore, according to BSE data. Other gold NBFC stocks were also trading with gains on Friday. Shares of Manappuram Finance and IIFL Finance were up over 2 per cent, while Fedbank Financial Services was up over 1.5 per cent. Government backs small borrowers' safety The Ministry of Finance said that the RBI's Draft Directions on Lending Against Gold Collateral were examined by the Department of Financial Services (DFS), and suggestions have been given to ensure that the requirements of the small gold loan borrowers are not adversely affected. In a post on X (formerly Twitter), the Ministry said that DFS stated that such guidelines will need time to implement at the field level and hence may be suitable for implementation from January 1, 2026. Further, DFS has also suggested that small ticket borrowers below ₹2 lakh may be excluded from the requirements of these proposed directions to ensure timely and speedy disbursement of loans, it said in a post on X. "It is expected that concerns raised by various stakeholders, as well as the feedback received from the public, will be duly considered by the RBI before finalising the directions on the same." What are RBI's draft rules for gold loans? Last month, the central bank released a draft regulatory framework for lending against the collateral of gold loans. The move came as the RBI widened its effort to refine credit practices and strengthen consumer protection. The draft framework aims to introduce a "harmonised set of rules" across all lenders, such as banks, Non-Banking Finance Companies (NBFCs), including Housing Finance Companies (HFCs), co-operative banks, and regional rural banks (RRBs) involved in gold-backed lending. RBI Governor Sanjay Malhotra said the proposed guidelines on gold loans are not going to tighten such lending but rationalise it. To know all the key proposals in the draft guidelines, CLICK HERE About Muthoot Finance Muthoot Finance is a gold loan non-banking financial company (NBFC). The company specialises in providing secured loans against gold ornaments, offering credit solutions to individuals and businesses. In addition to gold loans, Muthoot Finance also offers products such as money transfer services, foreign exchange, insurance, and microfinance, further expanding its footprint in the financial inclusion space.
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Business Standard
3 days ago
- Business
- Business Standard
Finance ministry seeks relaxation in RBI's new gold loan proposals
India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30 per cent between September and February. In its post, the finance ministry said small ticket borrowers below Rs 200,000 ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance rose 4.9 per cent and Manappuram Finance traded 0.5 per cent higher as of 10:34 a.m. IST. IIFL Finance was down 0.6 per cent.
Yahoo
3 days ago
- Business
- Yahoo
India federal finance ministry seeks relaxation in central bank's gold loan proposals
MUMBAI (Reuters) -India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30% between September and February. In its post, the finance ministry said small ticket borrowers below 200,000 rupees ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance rose 4.9% and Manappuram Finance traded 0.5% higher as of 10:34 a.m. IST. IIFL Finance was down 0.6%. ($1 = 85.3225 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
India federal finance ministry seeks relaxation in central bank's gold loan proposals
MUMBAI, May 30 (Reuters) - India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30% between September and February. In its post, the finance ministry said small ticket borrowers below 200,000 rupees ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance ( opens new tab rose 4.9% and Manappuram Finance ( opens new tab traded 0.5% higher as of 10:34 a.m. IST. IIFL Finance ( opens new tab was down 0.6%. ($1 = 85.3225 Indian rupees)
Yahoo
3 days ago
- Business
- Yahoo
India federal finance ministry seeks relaxation in central bank's gold loan proposals
MUMBAI (Reuters) -India's federal finance ministry has sought relaxations in the new rules on gold loans proposed by the central bank, according to a post on its official social media handle. The department of financial services under the finance ministry has asked the Reserve Bank of India to ensure that the needs of small gold loan borrowers are not "adversely impacted", a post on the ministry's verified handle on social media platform X said. In April this year, the RBI had proposed tighter rules for monitoring and disbursement of gold loans, often used by low-income borrowers. The tighter rules came after such loans surged nearly 30% between September and February. In its post, the finance ministry said small ticket borrowers below 200,000 rupees ($2,344.05) should be excluded from the tighter rules to ensure "timely and speedy disbursement of loans". The ministry also proposed that the new rules not be implemented before January 1, 2026, to ensure the ground staff at lenders are adequately prepared. The central bank had sought comments on its proposed rules by the middle of May. The final rules are yet to be issued. On the day, Muthoot Finance rose 4.9% and Manappuram Finance traded 0.5% higher as of 10:34 a.m. IST. IIFL Finance was down 0.6%. ($1 = 85.3225 Indian rupees)
