ICICI Securities: Gold Loans: How To Read Into LTV Relaxation For Banks

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.The regulator yesterday relaxed the permissible loan to value (LTV) on non-agri gold loans sanctioned by banks to 90% (from 75%) till March 31, 2021 with the specific objective of facilitating borrowers to tide over the temporary liquidity gap due to Covid-19 stress.This is quite unlike the Reserve Bank of India - that the LTV has been surprisingly relaxed upwards, especially when the collateral value, i.e. gold prices, have rallied sharply in recent months.We believe easing financial stress and providing a stopgap arrangement (liquidity against gold) to the stressed borrower has taken precedence over prudence this time.However, several specifications in the notification are raising apprehensions that we want to address to the best of our assessment..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: Gold Loans: How To Read Into LTV Relaxation For Banks

ICICI Securities: Gold Loans: How To Read Into LTV Relaxation For Banks

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