Shares of Manappuram Finance Ltd climbed 3% to ₹240.56 on Friday after the Reserve Bank of India (RBI) announced a key revision in gold loan regulations. RBI Governor Sanjay Malhotra stated that the loan-to-value (LTV) ratio will be increased from 75% to 85% for gold loans up to ₹2.5 lakh per borrower, inclusive of the interest component.
The stock opened at ₹234.58 and touched an intraday high of ₹242.58 before settling around ₹240.56, gaining ₹5.98 from the previous close. Manappuram’s market capitalization stood at ₹204.33 billion, with a strong average volume of 4.68 million shares.
Additional measures announced by the RBI include eliminating the need for credit appraisals for small gold loans and requiring end-use monitoring only under Priority Sector Lending (PSL). Final guidelines on the new gold loan regulations are expected today or by Monday.
The announcements came as part of the RBI’s broader policy update, which included a 50 bps repo rate cut to 5.5%, a CPI inflation revision for FY26 to 3.7%, and a maintained GDP growth forecast of 6.5%. These changes are expected to improve lending conditions and benefit key gold loan financiers like Manappuram.
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