Impact on Revenue Asirvad Microfinance contributes 27% to Manappuram’s total revenues, primarily offering microfinance loans to low-income women. The RBI's action poses a significant risk to this revenue stream.
Shares dropped to Rs 150.73 as investor confidence waned. The market's swift reaction indicates deep concern over regulatory impacts.
Brokerages like Jefferies and Morgan Stanley downgraded their ratings on Manappuram Finance, predicting a decline in earnings and potential capital needs.
This isn't the first time Manappuram Finance has faced RBI scrutiny. Previous advisories limited cash disbursement and demanded compliance reviews due to irregular practices in the gold financing sector.
Asirvad Microfinance expressed commitment to addressing the RBI’s feedback and implementing necessary improvements, emphasizing the importance of regulatory compliance.
Investors will be closely monitoring Manappuram Finance's next steps. Can they restore confidence and navigate this regulatory landscape? Stay tuned for updates!