Manappuram Finance jumps 3.50% after NBFC says RBI advisory wont impact its operations
VP Nandakumar, managing director & CEO of the company, said, Our highly popular product -- Online Gold Loan, that forms 50% of our gold loan book, follows a fully paperless process of application and disbursement. Even for the loans originating at branches, most of our customers prefer direct transfers. Moreover, our employees are trained to convince customers about the same as it promotes smooth operations.
Manappuram Finance Share Price: Manappuram Finance rose by 3.50 per cent on BSE on Friday, May 10, 2024, after the finance company says that the RBI's advisory on the cash loan limit had no impact on its operations, and a change in the company's top management.
The stock that closed at Rs 165.70 a day ago rose by 3.50 per cent to the day's high of Rs 171.50 on Friday.
The stock of the finance company was trading higher by 2.05 per cent, or Rs 3.40, at Rs 169.10 at 9:41 am on Friday.
Manappuram Finance reacted on the RBI's statement which had asked the NBFC to strictly adhere to the Income Tax Act (IT) provision on cash disbursement.
The central bank said that no NBFC should disburse loan amount in excess of Rs 20,000 in cash.
Manappuram Finance said that the RBI's advisory will not reduce gold loan demand.
V.P. Nandakumar, managing director & CEO of the company, said, “Our highly popular product -- Online Gold Loan, that forms 50% of our gold loan book, follows a fully paperless process of application and disbursement. Even for the loans originating at branches, most of our customers prefer direct transfers. Moreover, our employees are trained to convince customers about the same as it promotes smooth operations."
"We believe that the RBI has issued the said advisory to promote transparency and prevent potential disputes, and we support the same. We have always followed fully-compliant processes and will continue to do so. We don’t see the concerned advisory dissuading customers from obtaining gold loans," he added.
Madhu Mohan re-appointed Chief Risk Officer
The company also saw a few changes in its top management on Thursday as Madhu Mohan was re-appointed as Chief Risk Officer.
"In compliance with the RBI circular dated May 16,2019, we hereby inform you that the Board has reappointed Mr. Madhu Mohan, Vice President as Chief Risk Officer for a period of two year with effect from July 17,2024," said Manappuram Finance in a statement.
The Board of Directors also approved the appointment of Renjith P.R. as Chief Human Resource Officer.
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