Gold loan providers in India face a rise in robberies as gold prices rise

<ul><li>The RBI governor announced that the <keyword id="9708660" type="UNKNOWN" weightage="20" keywordseo="permissible-loan">permissible loan</keyword> to value ratio (LTV) for gold loans is now increased from 75 to 90%.</li><li>Shares of <keyword id="163007" type="COMPANY" weightage="20" keywordseo="Muthoot-Finance">Muthoot Finance</keyword> and <keyword id="127405" type="DOMAIN" weightage="20" keywordseo="Manappuram-Finance">Manappuram Finance</keyword> rallied over 5% in reaction to RBI Governor’s statement. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>In a move that brings some relief for stressed borrowers, the Reserve Bank of India has eased gold loan guidelines. RBI Governor <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword> announced that the permissible loan to value ratio (LTV) for gold loans has been increased from 75 to 90%. Borrowers can now unlock more value, as their gold jewellery will fetch more money that it did previously. The gold futures were trading at the lifetime highs of ₹55,500, today. “With a view to mitigating the impact of COVID-19 on households, it has been decided to increase the permissible loan to value ratio (LTV) for such loans to 90%,” said Shaktikanta Das, the RBI governor. And, this relaxation shall be available till March 31, 2021, he said. Das further added that “As per extant guidelines, loans sanctioned by banks against pledge of gold ornaments and jewellery for non-agricultural purposes should not exceed 75% of the value of gold ornaments and jewellery.” The loan to value is one of the key risk factors that lenders assess before approving a mortgage. Shares of Muthoot Finance and <keyword id="49568" type="DOMAIN" weightage="20" keywordseo="Manappuram">Manappuram</keyword> Finance rallied over 5% in reaction to the statements. However, later in the trading session they pared their gains to end lower. Muthoot Finance is the largest gold loan non-banking financial company in India. <div type="image" title="muthhoot" msid="77388889" hostid="261"></div> <div type="image" title="Manappuram" msid="77388868" hostid="261"></div> “This is a liquidity booster step by RBI during the economic crisis of Covid-19. Now gold loan customers can take a higher amount of loan against their gold security. This step will expand Industry, however all gold loan companies shall strengthen their risk processes, as gold prices are going to be volatile from hereon,” said Amit Jain, Ashika Wealth Advisors. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-governor-shaktikanta-das-leaves-repo-rate-unchanged-to-check-inflation/articleshow/77387591.cms" data-type="tilCustomLink">‘Watchful’ RBI leaves repo rate unchanged to keep inflation in check</a> <a href="https://www.businessinsider.in/stock-market/news/hdfcs-share-price-opened-1-5-higher-after-announcing-14000-crore-fundraising/articleshow/77385962.cms" data-type="tilCustomLink">HDFC’s share price opened 1.5% higher after announcing ₹14,000 crore fundraising</a>

RBI eases gold loan norms — you can now borrow more against gold jewellery

<ul><li><keyword id="6354813" type="General" weightage="20" keywordseo="nifty" source="Orion">Nifty</keyword> gained over 90 points, <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> added over 300 points as of 9:54 am.</li><li><keyword id="645971" type="General" weightage="20" keywordseo="adani-stocks" source="Orion">Adani stocks</keyword> were amongst the top gainers even on Tuesday morning.</li><li>Experts say that the market will be bullish even if the ferocity of Monday’s rally might not be repeated. </li></ul>India’s benchmark indices extended their Super Monday gains – as they rose by 0.4% in early morning trade on Tuesday as well. While Nifty gained over 90 points, Sensex added over 300 points as of 9:54 am. Adani group stocks, whose collective market capitalization hit ₹12 lakh crore yesterday, too shined in today’s early trade — with Adani Ports and Adani Enterprises becoming the top gainers. The other gainers include M&amp;M, BPCL and Axis Bank. Experts predict an across-the-board rally where the construct stays bullish even if the ferocity of Monday’s rally might not be repeated. “The market has the potential to go up by another 5% in the next many weeks. Beyond that valuations will get stretched inviting correction in the market,” said Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services. Institutional investors have purchased ₹7,000 crore worth of equities yesterday, and their optimism will catch on, experts say. “It is important to understand that FPIs have reversed their selling strategy and have been consistent buyers during the last seven days. There is accumulation happening in the frontline banking stocks. This, along with short covering and reasonable valuations, will keep this segment strong,” added Vijayakumar. Top gainers on Nifty50 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Ports </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Enterprises </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">M&amp;M </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">BPCL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.8% </td></tr></tbody><tbody></tbody><tbody></tbody></table>*as of 10 am Prashanth Tapse, senior VP of research at Mehta Equities too says that there are many positive catalysts including rise in GST collections, declining US inflation, and expectations of the Federal Reserve's cautious approach. “The sentiment is exuberant that the rally might continue for the next trading session as well.. Large caps may now see more strength after decent consolidation,” says Om Mehra, technical analyst at Samco Securities. Tapse recommends stocks like Bharat Electronics, Mannapuram Finance, PI Industries, Tata Consumer, NTPC, and PNB. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="553320405"> 🔸Stock Name: Adani Green $ADANIGREEN.NSE 🔸short term momentum strong &mdash; (@stock_ark) <a href="https://stocktwits.com/stock_ark/message/553320405"> December 05, 2023</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div>SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/no-stopping-the-election-party-with-occasional-profit-booking-say-analysts/articleshow/105721549.cms">No stopping the election party with occasional profit-booking say analysts</a> <a href="https://www.businessinsider.in/stock-market/news/private-equity-vc-players-make-a-killing-as-ipo-rush-yields-them-10000-crore/articleshow/105649353.cms">Private equity &amp; VC players make a killing as IPO rush yields them ₹10,000 crore</a>

Magic Monday spills over to Tuesday- Here’s what you should buy

New Delhi, Jan 9 () Leading stock exchange BSE on Thursday said nine companies, including SBI Cards and Payment Services Ltd, NABARD, ICICI Securities Ltd and Mannapuram Finance, have filed applications with the bourse to list their commercial papers for a total issue size of Rs 15,149 crore.
 Adani Ports and Special Economic Zone Ltd, National Bank for Agriculture and Rural Development (NABARD), Kotak Mahindra Investments Ltd, ICICI Securities Ltd, Manappuram Finance Ltd made applications to list their CPs at BSE for issue size of Rs 6,750 crore, Rs 4,000 crore, Rs 1,507 crore, Rs 1,175 crore and Rs 825 crore, respectively, the exchange said in a release.
 Besides, JM Financial Products Ltd, GIC Housing Finance Ltd, Standard Chartered Investments and Loans (India) Ltd and SBI Cards and Payment Services Ltd made applications to list CPs for issue size of Rs 487 crore, Rs 200 crore, Rs 105 crore and Rs 100 crore, respectively. 
 After the process, the effective date of listing CPs with the bourse will be January 10, it added.
 "Till date 70 issuers have done 558 issuances of commercial papers and have successfully listed CPs of Rs 1,67,239 crore on BSE. The weighted average yield of these issuances is 6.13 per cent with an average tenor of 150 days," BSE noted.
 A CP is an unsecured money market instrument issued in the form of promissory notes that enables highly rated corporate borrowers to diversify their sources of short-term borrowing and provides an additional instrument to investors.
 Such instruments can be issued for maturities between a minimum of 7 days and a maximum of one year from the date of issue.
 CPs are usually issued at a discount from face value and reflect prevailing market interest rates. AST 
RVK

You Searched For "Mannapuram finance" and got 4 results

Gold loan providers in India face a rise in robberies as gold prices rise

Navdeep Yadav

RBI eases gold loan norms — you can now borrow more against gold jewellery

Navdeep Yadav

Magic Monday spills over to Tuesday- Here’s what you should buy

Katya Naidu

9 firms to list commercial papers on BSE for Rs 15,149 crore issue size

PTI