Market Pulse: RBI Boost Lifts Muthoot Finance, Manappuram Finance Share Price

Market Performance

Muthoot Finance and Manappuram Finance share prices maintained momentum on Monday, 9 June.

• 11:30 AM snapshot:
  • Muthoot Finance — ₹2,540 (+3.8 %)
  • Manappuram Finance — ₹253.25 (+2.3 %)
• 30-day run-up: Muthoot +14 %; Manappuram +10 %

Main News – RBI's Final Gold-Loan Guidelines

The Reserve Bank of India has published its definitive rulebook for gold lending, aiming at greater simplicity and borrower protection.

Key numbers at a glance

• Paperwork trimmed for smaller tickets—no credit checks required.
• End-use restrictions apply only when the loan qualifies as priority-sector lending.
• Renewals become stricter: interest must be cleared and a fresh credit check completed before any top-up.
• All charges—ranging from assaying to auction fees—must be spelled out in the loan contract.
• The deadline for full compliance is April 2026.

These norms apply to every regulated gold lender, including banks, small finance banks, and NBFCs.

Company Details

• Muthoot Finance
  • India's largest pure-play gold financier.
  • Riding the higher 85 % LTV for sub-₹2.5 lakh loans should widen its potential borrower base.
  • The outperformance of Muthoot Finance and Manappuram Finance share prices underscores investor confidence in a uniform playing field.
• Manappuram Finance
  • Strong rural footprint and diversified product mix.
  • Gains from streamlined documentation for small loans and more transparent fee disclosure.
  • Over the last month, the share prices of Muthoot Finance and Manappuram Finance have moved in tandem with regulatory clarity.

Summary

The RBI's move to raise the LTV ceiling to 85% on small gold loans and enforce transparent, borrower-friendly norms has turbocharged sentiment in gold-loan NBFCs. The immediate market reaction—seen in the surge of Muthoot Finance and Manappuram Finance share prices—suggests that traders welcome the new parity between banks and non-banks. Compliance is scheduled for April 2026, providing lenders with ample time to adapt while maintaining growth momentum.