Shares in gold loan providers surge on RBI report proposals
Jan 03 2013
The ratio is an important tool that can vary the quantity of gold loans which a company can provide to customers.
"The proposals to increase LTV and to use cheques for high-value transactions are positive, but a cap on lending rates and restrictions on NCD (non-convertible debentures) will affect gold-loan NBFCs' profitability," Kotak Securities said in a note.
Muthoot Finance shares up 9 percent, while Manappuram Finance rises 16 percent.
Shares in Titan Industries, which makes gold jewellery, are down 1 percent on concerns over rising costs after the government says it will make importing gold costlier.