Mumbai, May 15 || Shares of Muthoot Finance on Thursday slipped 7.25 per cent or Rs 163.90 to hit an intra-day low of Rs 2,096 on the national Stock Exchange (NSE) amid Reserve Bank of India's (RBI) draft loan-to-value (LTV) norms.
.On the Bombay Stock Exchange (BSE), the shares were trading at Rs 2,096.40, down by Rs 166.35 or 7.35 per cent during the intra-day session.
The decline in Muthoot Finance's share price was driven by concerns over the Reserve Bank of India’s (RBI) draft regulations on LTV norms for gold loans.
According to analysts, the RBI’s draft guidelines, if implemented, could have a near-term impact on the disbursement LTV of Muthoot Finance and its peer non-banking financial companies (NBFCs).
As per a note by Motilal Oswal, "Until the final gold-lending guidelines are published by the RBI, the growth outlook on gold loans will remain uncertain."
The fall in share price came a day after the stock closed 2 per cent higher at Rs 2,262.75.
However, the company reported strong financial results for the fourth quarter (Q4) and full financial year 2024–25 (FY25).
In the March quarter, Muthoot Finance posted a 22 per cent year-on-year (YoY) rise in consolidated profit after tax (PAT), reaching Rs 1,444 crore, compared to Rs 1,182 crore in the same quarter last fiscal (Q4 FY24).