Banks’ Gold exposure increased in last quarter.
*Due to RBI increased LTV for Banks, to support.
*unsecured Lending was stopped/ceased by many lenders, Gold is secured lending and a good Avenue.
Muthoot AUM decreased. They follow a certain system. Where existing, tried and tested, clients are a preferred business. Whereas new clients are dealt with more carefully. Apparently, caution was on their minds, just like it was for Kotak Bank, for one.
Plus a fall in gold price.
But, this is not expected to repeat in the coming quarters. Gold is taking strong support at usd1700.
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