RBI move to slow down gold loan growth, lead to uptick in default: CRISIL

Quick Summary:

The Reserve Bank's recent notification asking financiers to review their gold loan practices can slow down loan growth in the near-term and lead to an uptick in asset quality stress, a domestic rating agency said on Tuesday.

It can be noted that a few weeks ago, RBI had flagged certain irregular practices in loan against gold jewellery and asked lenders to comprehensively review their policies, processes and practices to identify gaps and initiate remedial measures in a time-bound manner.

"Potentially, this could impact gold loan disbursements during the transition phase and curb growth in the business," the note by Crisil said.

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Category: BusinessFinance

Markets: India

Topics: Delinquencies Gold loan RBI Finance sector Crisil Economy

Source Website Secure: Yes (HTTPS)

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Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-22 @ 22:45:53 (1 weeks ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 364 words

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Copyright Owner: © Business Standard

News ID: 23204730

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