Non-gold loans account for 13 percent of the NBFC's book now. Non-gold loan businesses in subsidiaries continue to do well, with disbursements during the first half of the year increasing by 76% in the microfinance business and by 164% in the housing finance business, Muthoot said.
Nischint Chawathe, senior analyst at Kotak Institutional Equities feels the revised RBI guidelines for NBFCs is better than expected. In fact, he expects NBFC stocks to react positively to the RBI announcement.
Gold backed financial instruments coupled with stricter monitoring of gold loan NBFCs is the prescription, made by a RBI working committee on gold related issues be it gold import or loan.
The Reserve Bank of India issued new fair practice guidelines for the MFI and gold loan NBFCs (non-banking finance companies) under which these companies will have to ensure that adequate due diligence is carried out on customers.