Manappuram Finance shares fall another 3% post RBI ban on Asirvad Microfinance to disburse loans

Manappuram Finance (NSE: MANAPPURAM) saw its shares tumble by more than 3% today after the Reserve Bank of India (RBI) imposed a strict order halting loan disbursements by its microfinance subsidiary, Asirvad Micro Finance Limited. The stock opened at ₹159.59, peaked at ₹159.59, and hit a low of ₹150.73, with the previous close recorded at ₹177.33.

The RBI’s directive, which affects Asirvad Micro Finance and three other Non-Banking Financial Companies (NBFCs), restricts these firms from sanctioning and disbursing new loans due to non-compliance with certain regulatory guidelines. This order, effective from October 21, 2024, has caused a sharp decline in investor sentiment, triggering the drop in Manappuram Finance’s stock price.

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As of 10:30 AM, the shares were trading 3.41% lower at ₹148.05 on the NSE, reflecting concerns over the potential impact of the RBI’s directive on the company’s future earnings and loan growth.

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