Stocks of Muthoot Finance, Manappuram Finance and IIFL Finance gathered to 7%, 5% and 5% respectively. Muthoot Finance is currently trading at Rs 2,440 from a Low of Rs 2,284. Meanwhile, Manappuram Finance is trading at Rs 245 Rs from Low of Rs 233. IIFLFinance is currently trading at Rs 449 Up from a low Rs 428.
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The RBI Governor also made it clear that small ticket gold loans do not require a credit valuation, and end-use monitoring will be limited to loans based on the Priority Sector Lending (PSL) category. These simplified norms were nothing new in the draft financial norms. All other norms have been integrated. Some regulated entities are not clear, so today’s Monday morning, the final guide said.
Last week, the Treasury Department recommended revisions to RBI’s draft instructions on lending against gold collateral, including postponing implementation. The Ministry of Financial Services (DFS) has proposed that gold loans under Rs 2 should be exempt from the proposed regulatory requirements. DFS said this step is necessary to ensure timely and prompt payments of loans for such small ticket borrowers.
The Reserve Bank of India has announced a 100 basis point CRR cut with an additional 50 basis points to reduce its reporate to 5.50%.
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This will be reduced three times in a row by RBI in the current calendar year, with the second rate being reduced in the current fiscal year. This marks the third consecutive cut under Governor Malhotra. In February and April, Apex Bank reduced its report rate by 25 basis points each. Previously, reposting was held at 6.5% in 11 consecutive meetings.
“Even with rising gold prices, core inflation has remained largely stable and was included between March and April,” the governor said in a policy statement.
