Indian gold finance cos up; cbank allows them as banking correspondents

Written by Reuters | Updated: Jun 25 2014, 16:38pm hrs
Shares of Indian finance companies which provide loans against gold rally after the central bank on Tuesday allowed banks to engage non-deposit-taking non-banking finance companies as banking correspondents for financial inclusion.

Manappuram Finance Ltd surges 4.7 percent while Muthoot Finance Ltd gains 2.5 percent.

Working as banking correspondents provides a strong fee income opportunity for these non-deposit-taking lenders.