Muthoot Finance shares fall 14% in two-day rout on RBI tightening gold loan rules

Muthoot Finance shares plummeted after the Reserve Bank of India (RBI) announced forthcoming comprehensive regulations for gold-backed loans, triggering a selloff. The new rules include a uniform Loan-to-Value (LTV) cap of 75% and stricter monitoring of gold loans for income generation. Other lenders with gold loan exposure, like Manappuram Finance and IIFL Finance, also experienced declines following the announcement.

from Economic Times https://ift.tt/zVWdgmA