Muthoot Finance, Manappuram Finance shares hit record high; rise up to 17% in three days, here's why

Shares of gold loan financing firms such as Muthoot Finance and Manappuram Finance rose up to 17% in three sessions on BSE. The stocks of gold loan financing firms extended their rally today as the Reserve Bank of India released its final guidelines for gold loans, which includes an increased LTV (loan-to-value) ratio to 85 percent.

Manappuram Finance shares climbed 17% since Friday to a record high of Rs 274.15 against the previous close of Rs 264.75 on BSE. Market cap of the firm rose to Rs 22,680 crore. The stock has gained 40 per cent since the beginning of this year but gained 51 per cent in one year. Total 7.33 lakh shares of the firm changed hands amounting to a turnover of Rs 19.82 crore on BSE.  

Muthoot Finance shares too climbed 12% in three sessions and hit a record high of Rs 2570.65 on BSE.  Market cap of the firm climbed to Rs 1.02 lakh crore. The stock has gained 45.58 per cent in a year and risen 15.38 per cent in 2025. Total 0.18 lakh shares of the firm changed hands amounting to a turnover of Rs 4.70 crore on BSE.  

For Manappuram and Muthoot Finance, gold loan business constitutes 50% and 98% of their total portfolio respectively.

The Loan-to-Value (LTV) ratio reflects the percentage of value that a borrower can obtain against their gold. The Reserve Bank of India (RBI) has increased the LTV ratio to 85 percent for gold loans up to Rs 2.5 lakh, and to 80 percent for loans ranging from Rs 2.5 lakh to Rs 5 lakh.

For loans exceeding Rs 5 lakh, the LTV cap remains at 75 percent, inclusive of interest. Additionally, for smaller loans, the documentation process has been streamlined, credit checks are not necessary, and restrictions on the use of funds apply solely if the loan is classified as priority sector lending.

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