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.

More To Explore