Shares of gold loan NBFCs came under pressure in Tuesday’s trade after the Reserve Bank of India (RBI) announced its intention to roll out comprehensive regulations on gold loans. Muthoot Finance plunged over 3.3% to ₹2,215.25, while Manappuram Finance slipped 1.1% to ₹226.38 on the NSE as of 10:30 AM. The announcement sparked concerns among investors about tighter compliance requirements and possible restrictions on lending practices in the gold loan segment, which forms a major portion of these firms’ business.
The central bank’s proposal is expected to significantly impact gold loan providers, given their high exposure to this secured lending segment. Market participants fear the new regulatory framework may include tighter loan-to-value ratios, stricter operational norms, and enhanced transparency and disclosures — potentially compressing margins.
Inflation and GDP outlook revised
Alongside this regulatory development, RBI Governor Sanjay Malhotra also provided key updates on the economy in the April MPC policy announcement. The Monetary Policy Committee (MPC) voted unanimously to reduce the repo rate by 25 basis points to 6.00%, with the policy stance also changed from ‘neutral’ to ‘accommodative’. This shift indicates the RBI’s intent to stimulate growth amid global economic headwinds.
Consumer Price Index (CPI) inflation for FY26 is now projected at 4%, comfortably within the central bank’s 2–6% target band. Malhotra noted that “a sharper-than-expected decline in food prices has given us comfort,” but warned that the RBI remains watchful of global uncertainties and weather disruptions.
On the growth front, India’s real GDP for FY26 has been trimmed to 6.5% from 6.7%, with quarterly projections as follows:
- Q1: 6.5%
- Q2: 6.7%
- Q3: 6.6%
- Q4: 6.3%
Malhotra attributed the downward revision to rising risks from global trade frictions, including the U.S.’s recent move to impose a steep 26% reciprocal tariff on Indian goods.
The RBI’s latest commentary and forward guidance suggest it will maintain a growth-supportive stance through 2025–26, but sectors like gold loans will remain under scrutiny. Investors in NBFC stocks, especially those exposed to gold lending, are advised to closely monitor regulatory updates in the coming weeks.
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