Big ticket lenders against gold, Muthoot Finance and Manappuram Finance, are taking a look at the Reserve Bank of India (RBI) guidelines on commercial banks' exposure to gold loan finance companies.
Executive Director of Muthoot Finance K. P. Padmakumar said that gold loan companies would have less elbow room now to source funds from banks. The answer to how this will be worked out will emerge a little later, he said.The RBI guidelines, issued on Tuesday, were follow-ups on earlier guidelines that asked NBFCs to cap their loan to value ratio at 60 per cent, Mr. Padmakumar added.
The earlier RBI guidelines were issued in March.
Manappuram Finance Managing Director I. Unnikrishnan said that the company had not crossed the limit set by RBI and pointed out that it did not see any difficulty with the fresh prescriptions as of now.