Manappuram Q3 net down 48%
The leading gold financing company had posted net profit of R161.37 crore in the corresponding period of previous fiscal.
Operating income during the reported quarter fell 19% to R586.20 crore from R721.37 crore a year ago.
Since April last year, the Reserve Bank has been tightenings its screws on gold loan companies through a series of measures. Among other steps, RBI has capped the loan-to-value (LTV) at 65% from a high of nearly 90% earlier and also limited banks’ exposure to gold loan firms.
“The company had faced greater stress on account of its high LTV-led growth and the subsequent realignment necessitated by regulatory changes,” Manappuram finance chief executive VP Nandakumar said.
“However, we are confident that with the positive report of the RBI-appointed KUB Rao Committee and renewed willingness on the part of banking sector, mutual funds and institutional investors to fund gold loans, the outlook would be positive,” he added.
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