India's gold loan companies slump as RBI proposes tighter regulations

IIFL Finance

09/04/2025 06:43

** Shares of Muthoot Finance MUTT.NS tank 10%, IIFL Finance IIFL.NS slide 7% and Manappuram Finance MNFL.NS dip 3%
** In its monetary policy review on Wednesday, India's central bank said it will to issue comprehensive regulations on prudential norms and conduct-related aspects for gold loan providers
** Reuters reported last month that the Reserve Bank of India plans to ask lenders to follow stricter underwriting processes for gold loans

** This is MUTT's worst one-day pct drop since August 2022, IIFL's worst pct fall since March 2024

** MUTT down 3.2% YTD, IIFL down 24.4% YTD.

** YTD, MNFL up 18%

 (Reporting by Sethuraman NR in Bengaluru)

 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))