MUMBAI: Manappuram Finance fell close to 3 per cent in the morning trade on Friday after the RBI imposed a Rs 42.78 lakh fine on the NBFC for breach of norms and tightened norms for consumer loans.
Manappuram Finance was fined for non-compliance of certain provisions of the Non-Banking Financial Company - Systemically Important Non-Deposit taking company and deposit taking company (Reserve Bank) directions.
Manappuram Finance was hit by the RBI's tightening of consumer lending norms, as the banking regulator increased the risk weightage to 125 per cent from 100 per cent on consumer loans exposure of all commercial banks and non-banking finance companies.
The lenders will now have to set aside more capital against these loans which will impact their profitability.