Discernible growth of Gold Loan NBFCs in India

George, Justine and Kurian, Alphonsa (2014): Discernible growth of Gold Loan NBFCs in India. Published in: Pauline Journal of Research and Studies , Vol. Vol. 2, No. Issue No.21 January 2015 (30 January 2015)

Abstract

Discernible growth of gold loan NBFCs recorded mainly on the backdrop of appreciation in gold price affirming the indicators of financial soundness such as capital adequacy ratio, Non Performing Asset (NPA) and share of borrowing in the total asset of bank that are contained well within the limit specified by RBI. Rules and regulations on gold loan NBFCs and concomitant decline in gold price have led to the saturation of growth of NBFCs. In short, the sharp correction of gold price would have a devastating effect not just on gold loan NBFCs but also on the entire financial market.

• Item Type: MPRA Paper
• Language: English
• Keywords: NBFCs, RBI, Gold Loan.
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services; G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors

References

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Reddy, Y.V. (1997): “Gold Banking in India”, Address at the World Gold Council Conference held in New Delhi on August 2.

Jagirdar, Brinda and Sumit Jain (2012): “Gold Consumption and its Impact on Indian Economy”, Mumbai.

Various Audited Annual Financial reports of Muthoot Finance LTD and Manappuram Finance LTD