Muthoot Finance Share Price Hits Record High as Gold Loan Rule Easing Fuels Rally

Muthoot Finance share price jumped 4.2% on June 9, hitting a new all-time high of ₹2,548. This marks the seventh straight day of gains, taking its market value above ₹1 lakh crore for the first time.

Boost from Relaxed Gold Loan Guidelines

The rally comes after the Reserve Bank of India (RBI) announced new gold loan rules. The RBI raised the Loan-to-Value (LTV) ratio for loans under ₹2.5 lakh from 75% to 85%, allowing lenders to offer larger loans against gold. The revised guidelines also removed mandatory provisions in case of LTV breaches and reduced paperwork for loans above ₹2.5 lakh.

Gold Loan NBFCs See a Surge

Other gold loan-focused NBFCs like Manappuram Finance and IIFL Finance also surged over 10% in two sessions after the news. The easier norms are expected to boost demand and improve yields for these companies.

About Muthoot Finance Ltd

Muthoot Finance Ltd is a leading Indian financial company and the country’s largest non-banking finance company (NBFC) specialising in gold loans. Along with gold financing, it also provides various other loan products, insurance services, money transfers, and sells gold coins.

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Muthoot Finance Share Price Performance

As of June 9, 2025, Muthoot Finance share price closed at ₹2,542.90, marking a 3.95% gain for the day. Over the past 5 days, the stock has risen by ₹320.70 (14.43%), and in the past month, it has gained ₹313.30 (14.05%). In the last 6 months, the stock surged ₹551.60 (27.70%), while over the past year, it jumped ₹783.50 (44.53%). Over a 5-year period, Muthoot Finance has delivered an impressive return of ₹1,563.30, or 159.59%.

Conclusion

Muthoot Finance’s record rally reflects strong investor optimism, driven by regulatory support. With relaxed norms and rising gold prices, the company is well-placed for short-term growth.

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