Muthoot Finance Shares Declines Over 7% Amid RBI’s Draft LTV Guidelines

Mumbai: Shares of Muthoot Finance on Thursday slipped 7.25 according to cent or Rs 163.90 to hit an intra-day low of Rs 2,096 at the nationwide Stock Exchange (NSE) amid Reserve Bank of India’s (RBI) draft loan-to-value (LTV) norms. 

.On the Bombay Stock Exchange (BSE), the stocks had been buying and selling at Rs 2,096.40, down through Rs 166.35 or 7.35 according to cent right through the intra-day consultation.

The decline in Muthoot Finance’s proportion value used to be pushed through considerations over the Reserve Bank of India’s (RBI) draft laws on LTV norms for gold loans.

According to analysts, the RBI’s draft pointers, if carried out, can have a near-term have an effect on at the disbursement LTV of Muthoot Finance and its peer non-banking monetary corporations (NBFCs).

As according to a notice through 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 proportion value got here an afternoon after the inventory closed 2 according to cent upper at Rs 2,262.75.

However, the corporate reported robust monetary effects for the fourth quarter (This fall) and entire monetary yr 2024–25 (FY25).

In the March quarter, Muthoot Finance posted a 22 according to cent year-on-year (YoY) upward push in consolidated benefit after tax (PAT), attaining Rs 1,444 crore, in comparison to Rs 1,182 crore in the similar quarter final fiscal (This fall FY24).

For the whole yr, the corporate reported its highest-ever standalone PAT of Rs 5,201 crore, appearing a 28 according to cent enlargement from the former monetary yr (FY24).

The corporate additionally completed a significant milestone through crossing Rs 1 lakh crore in each standalone mortgage belongings below control (AUM) and gold mortgage AUM.

Overall, the consolidated gross mortgage AUM larger through 37 according to cent YoY to Rs 1,22,181 crore in This fall FY25, up from Rs 89,079 crore in This fall FY24.

On a quarter-on-quarter (QoQ) foundation, this used to be a 10 according to cent upward push. Muthoot Finance’s department community expanded to 7,391 branches around the nation, a 13 according to cent enlargement from the former yr’s 6,541 branches.

In addition, the corporate introduced its highest-ever dividend of Rs 26 according to proportion (260 according to cent on a face price of Rs 10), rewarding its shareholders after a robust yr.