Muthoot Finance shares slip 14% in two sessions, here's why 

Shares of Muthoot Finance fell for the second straight session on Friday after RBI Governor Sanjay Malhotra during the RBI Policy said the central bank would soon release comprehensive draft guidelines aimed at harmonizing regulations for loans backed by gold jewellery. 

The stock is down 14% in two sessions.  In the current session, the stock hit an intra day low of Rs 1964.35, falling 8.22% against the previous close of Rs 2140.30 on BSE.  Market cap of the firm slipped to Rs 80,720 crore. 

However, shares of other gold financing firms such as Manappuram Finance and IIFL Finance were  trading in th green.

Manappuram Finance stock was trading 0.16% higehr at Rs 225.30 on BSE. Market cap of the firm rose to Rs 19,070 crore. 

IIFL Finance, another gold loan player's stock was trading 0.58% higher at Rs 327 on BSE. Market cap of the firm rose to Rs 13,873 crore. 

On Wednesday, shares of Muthoot Finance, Manappuram Finance and IIFL Finance slipped up to 12% in the afternoon session after RBI 's policy meet. 

“The draft guidelines in this regard are being issued for public comments,” the RBI said during its Monetary Policy Committee (MPC) review.

The norms are designed to unify lending practices across all regulated entities (REs) while taking into account their risk-bearing capacities. Currently, rules differ widely among banks and non-bank lenders. The new framework will address prudential and conduct-related aspects, especially following a spate of red flags identified in recent RBI audits.

After the policy meet, RBI Governor Sanjay Malhotra clarified that he never said the central bank will tighten norms on loans against gold. Subsequently, shares of gold loan financing firms such as Muthoot Finance, Manappuram Finance and IIFL Finance curbed losses on Wednesday. 

For IIFL Finance, gold loan business constitutes 21% of total portfolio while for Manappuram and Muthoot Finance, it stands at 50% and 98%, respectively.