Latest news with #MuthootFinance
Business Standard
24-06-2025
- Business
- Business Standard
Muthoot Finance allots 4,585 equity shares under ESOP
Muthoot Finance has allotted 4,585 equity shares of face value of Rs. 10/- each under Muthoot ESOP 2013. Post allotment, the Company's paid-up capital stands increased from Rs. 401,46,38,910 consisting of 40,14,63,891 equity shares of Rs. 10/- each to Rs. 401,46,84,760 consisting of 40,14,68,476 equity shares of Rs. 10/- each. Powered by Capital Market - Live News
Times of Oman
20-06-2025
- Business
- Times of Oman
India's new gold loan regulations to reshape lending landscape: S&P Global
New Delhi: S&P Global Ratings anticipates that the new regulations in Gold-Backed Loans will necessitate business model adjustments for lenders, with nimble players likely to gain a competitive edge. India's booming gold-backed loan sector is poised for significant changes with the introduction of new regulations, expected to be fully implemented by April 1, 2026. A key change involves the inclusion of interest payments until maturity in the calculation of Loan-to-Value (LTV) ratios, which could reduce the initial loan amount disbursed to borrowers. Additionally, credit appraisals for consumption-focused loans exceeding USD 3,000 and all income-generating loans will now require a cash flow analysis of borrowers, a departure from the traditional reliance on collateral valuation. The new rules also aim to enhance customer protection by standardizing the regulatory framework and addressing prudential and conduct gaps. This includes clearer guidelines on collateral handling and auction processes, mandating the return of pledged collateral and auction surpluses to borrowers within seven working days. Disbursements above INR 20,000 (approximately USD 231) will now be made directly to borrowers' bank accounts. The RBI is also emphasizing greater transparency in interest rate and fee disclosures and scrutinizing the outsourcing of core financial services. This shift will particularly impact nonbank financial companies (NBFCs) with large gold loan portfolios, such as Muthoot Finance Ltd. and Manappuram Finance Ltd., as they will need to invest in developing new risk management policies and training loan officers. Despite these adjustments, operational agility and service excellence, including quick and seamless loan disbursement, will remain crucial differentiators for lenders. NBFCs' strong customer relationships and investments in analytics are expected to help them maintain competitiveness. While these new models offer opportunities, they also introduce risks, particularly the heightened sensitivity to sharp corrections in gold prices if higher LTV norms are adopted for income-producing loans. Gold prices have surged by nearly 80% since late 2023, leading to a significant increase in collateral value and loan books. The RBI's regulatory treatment of NBFC gold loans, which applies a 100% risk weight, helps mitigate price risk, although banks currently benefit from a 0% risk weight on these loans.
Mint
20-06-2025
- Business
- Mint
Muthoot Finance, BEL to MCX: 19 Nifty 500 stocks hit 1-year highs this week amid geopolitical uncertainty
Stock market today: The Indian stock market remained range-bound this week as tensions in West Asia continued to keep investor sentiment fragile toward risky assets. The conflict between Iran and Israel, which showed no signs of de-escalation as it entered its eighth day, has pushed crude oil prices higher and dampened sentiment in India. Crude prices jumped nearly 3% on Thursday after Israel reportedly bombed nuclear targets in Iran, prompting retaliatory missile and drone strikes by Iran, including an attack on an Israeli hospital overnight. With prices staying elevated, crude is set to end the week with healthy gains, marking its third straight weekly advance. Meanwhile, all eyes are on the White House as President Donald Trump weighs launching direct military strikes on Iran, with a decision expected within two weeks. In response, Russia has warned the United States against taking military action, adding to the geopolitical uncertainty. While the heightening geopolitical tensions keep the markets wary, the lack of domestic triggers has also failed to provide fresh momentum for the bulls. Meanwhile, rich valuations in the mid- and small-cap segments have raised caution among investors, resulting in sharp corrections over the past few sessions." Foreign portfolio inflows have also been unsupportive, fluctuating throughout the week. While domestic institutional investors have offered some support, it hasn't been enough to lift the markets decisively higher. Amid ongoing market volatility, 19 stocks from the Nifty 500 index managed to touch fresh 52-week highs this week. Notably, most of these names came from the mid- and small-cap segments, outperforming the broader market. NBFC stocks have led the rally, boosted by the RBI's surprise 50 basis point cut in the repo rate and a 100-basis point reduction in the CRR. This has improved investor sentiment, with expectations that enhanced system liquidity will drive a sharp uptick in vehicle loans. Additionally, the hike in loan-to-value (LTV) ratio for gold loans has fueled a rally in gold-focused NBFCs. Scrip Name 52-week high price Muthoot Finance ₹ 2,669.90 Authum Investment ₹ 2,591.80 Au Small Finance Bank ₹ 808 Aditya Birla Capital ₹ 259.42 Max Financial Services ₹ 1,606.10 Navin Fluorine International ₹ 4,795.50 Multi Commodity Exchange ₹ 8,029.50 Redington ₹ 309.95 Bharat Electronics ₹ 407.50 Solar Industries ₹ 17,300 Lloyds Metals & Energy ₹ 1,545.50 Max Healthcare ₹ 1,256.20 Intellect Design Arena ₹ 1,255 Karur Vysya Bank ₹ 253.50 Narayana Hrudayalaya ₹ 1,957 Laurus Labs ₹ 683 JK Cement ₹ 6145 The Ramco Cements ₹ 1,082.50 Manappuram Finance ₹ 284.90 Source: Trendlyne Select defence and pharma stocks have also continued their upward momentum. In the previous trading session, NBFC stocks like Muthoot Finance, Authum Investment & Infrastructure, Aditya Birla Capital, and Max Financial Services hit their respective 52-week highs. Other stocks that touched their one-year peaks this week include Navin Fluorine, MCX, Redington, defense majors like Bharat Electronics and Solar Industries, as well as Lloyds Metals & Energy, Max Healthcare, Karur Vysya Bank, Intellect Design Arena, Laurus Labs, JK Cement, The Ramco Cements, and Manappuram Finance. Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said, 'Nifty, which has been trading within the 24500-25000 range for about a month now, is likely to remain within this range in the near term. The upper side of the range will be broken only on news of de-escalation of the Israel-Iran conflict or an abrupt end to the war.' There is uncertainty on this. The lower side of the range is unlikely to break since big buying, particularly by domestic institutions, will emerge on dips. If the war lingers and crude rises beyond $85, the lower band of the range will be broken. "A distinct feature of the market trend visible in yesterday's trade was the weakness in the broader market. While Nifty remained almost flat, SMIDs cracked, with the small-cap index correcting sharply by 2%. This trend of weakness in the broader market is likely to continue since they are excessively valued, and the ongoing risk-off can lead to further selling in this segment. Money may move from the overvalued SMIDs to the fairly valued, safe large caps in financials, industrials, autos, and real estate," he further added. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Business Standard
19-06-2025
- Business
- Business Standard
Muthoot Finance at new high; charts foresee 32% upside for gold loan shares
Muthoot Finance and Manappuram Finance have gained up to 19% thus far in June after RBI eased norms on small-ticket gold loans. Technical charts hint that these stocks can potentially rally 32% more. Rex Cano Mumbai Listen to This Article Shares of gold loan provider - Muthoot Finance were seen trading at new life-time highs in trades on Thursday, June 19. The stock hit a new all-time high at ₹2,670. In comparison, its competitor - Manappuram Finance stock was seen trading with a marginal loss at ₹264. Manappuram registered its summit at ₹284.90 on the NSE on June 16. Both stocks - Muthoot Finance and Manappuram Finance have witnessed a sharp rally in the month of June so far, after the Reserve Bank of India (RBI) on June 6 eased norms for small-ticket gold loans.
Reuters
19-06-2025
- Business
- Reuters
India's new gold loan rules to reshape lenders' business models, says S&P
June 19 (Reuters) - New rules from India's central bank will make lenders in the booming gold loan market overhaul their underwriting practices and brace for higher near-term costs, S&P Global Ratings said in a note on Wednesday. The Reserve Bank of India's final guidelines on gold-backed lending, issued earlier this month, mandate a shift to cash flow-based credit assessments and tighter monitoring of loan-to-value (LTV) ratios. S&P said these changes will have the greatest impact on non-bank lenders heavily reliant on gold loan portfolios. 'The first is that finance companies face upfront costs as they transition to a cash flow-based assessment of the borrower's creditworthiness," said Shinoy Varghese, credit analyst at S&P Global Ratings. Lenders have until April 1, 2026, to comply with the new norms. While the rules allow greater flexibility in offering short-tenor loans for consumption borrowing, the inclusion of interest rates in LTV calculations may shrink actual disbursals to borrowers, the ratings agency said. S&P said that gold-loan specialists like Muthoot Finance ( opens new tab and Manappuram Finance ( opens new tab will likely face the steepest adjustments. It also warned that as lenders broaden their risk appetite and explore new loan structures, the sector may become more vulnerable to sharp corrections in gold prices.
