Shares of Indian non-bank gold lenders Manappuram Finance and Muthoot Finance dropped 2.9 per cent and 3.6 per cent early on Tuesday due to growth concerns, a day after the central bank found "several irregular practices" in the industry, reports Reuters.
These irregularities, the Reserve Bank of India said, included the use of third parties to source and appraise gold loans, not valuing gold in the customer's presence and inadequate due diligence.
Those comments are "a sentimental negative for the gold lenders", brokerage Motilal Oswal said in a note.
The central bank gave lenders three months to fix the lapses and report back in order to avoid supervisory action.
Indian gold loan lenders' stocks dip
FE Team | Published: October 02, 2024 00:01:35
Indian gold loan lenders' stocks dip
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