Muthoot Finance Ltd.'s share price jumped nearly 7% after the Finance Ministry suggested the Reserve Bank of India to exempt small borrowers in the draft gold loan norms. The Department of Financial Services suggested to exempt borrowers availing loans under Rs 2 lakh.
Muthoot Finance will likely be the key beneficiary in case suggestions get implemented, as the lender has 63% of its loan book below Rs 3 lakh.
The department also asked the regulator to implement the draft norms from January 2026. In draft norms, the RBI asked gold loan providers to make sure the loan-to-value ratio does not cross 75% during the entire loan tenure. Lenders will also require to cap gold loan in their portfolio.
Muthoot Finance Share Price
Muthoot Finance Ltd. share price rose 6.90% to Rs 2,207.70 apiece, the highest level since May 15. It was trading 6.54% higher at Rs 2,200.9 apiece as of 11:24 a.m., as compared to a 0.25% decline in the NSE Nifty 50.
The stock rose 31.51% in 12 months, and 3.05% on year-to-date basis. Total traded volume so far in the day stood at 4.5 times its 30-day average. The relative strength index was at 54.87.
Out of 25 analysts tracking the company, 15 maintain a 'buy' rating, six recommend a 'hold' and four suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.0%.
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