Muthoot Finance Share Price Rallies 25% in 8 Trading Sessions: Discover Why

Muthoot Finance share price has rallied by 25% in the past 8 trading sessions. On Tuesday, the stock reached a new record high of ₹2,570.65 on the BSE. This was driven by the recent introduction of new rules for small-ticket gold loans by RBI.  

The Catalyst Behind Rally in Muthoot Finance Share Price and Other NBFCs 

On Friday, the RBI released its updated guidelines, introducing more flexible Loan-to-Value (LTV) norms compared to earlier proposals. Under these revised regulations, the LTV ratio limit for gold loans up to ₹2.5 lakh has been increased to 85% from the previous 75%. For loans exceeding ₹5 lakh, the 75% LTV cap remains in effect, including interest. The LTV ratio indicates the maximum percentage of a gold's value that a borrower can receive as a loan. 

RBI’s new move has led to a favourable movement in stocks belonging to Non-Banking Financial Companies (NBFCs), including Manappuram Finance, and IIFL Finance. 

At 12:19 PM, Muthoot Finance share price was trading at ₹2,549.40.  

Muthoot Finance Financial Performance  

Muthoot Finance reported a robust financial year 2025, achieving a consolidated loan Asset Under Management (AUM) of ₹1.22 lakh crore. The company successfully crossed the ₹1 lakh crore mark in Gold Loan AUM alone and posted a consolidated net profit of ₹5,352 crore for FY25. 

Read more: Nibe India Share Price Hits 10% Upper Circuit Limit, After DRDO's Technology Transfer Agreement 

Conclusion 

Muthoot Finance's recent stock surge is a direct reflection of positive regulatory changes by the RBI concerning gold loan norms, coupled with the company's solid financial performance. The revised guidelines are expected to provide more operational flexibility and potentially boost the gold loan sector's growth.  
 

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