RBI's Gold-Lending Guidelines: Harmonisation Of Loan-To-Value Norms; Nothing Disruptive, Says Motilal Oswal

A few NBFCs, which are in gold lending, as well as some small finance banks and other midsized banks, had acknowledged in their respective earnings calls over the last two quarters that they were asked by the regulator to adhere to the LTV cap of ~75% throughout the tenor of the loan. Once the final guidelines are published, all NBFCs will have to adhere to the LAP cap of 75% throughout the loan tenor. This would also entail a change...