Asirvad Microfinance was one of the four NBFCs and NBFC-MFI that the Reserve Bank of India initiated action against on October 17 due to serious regulatory issues.
According to Asirvad Microfinance: “We value the feedback provided by the honourable Reserve Bank of India and take on record the improvement areas suggested.”
Manappuram stock has dropped 25% over the past three months, which the brokerage said “we believe already factors in the growth weakness and asset quality deterioration to a great extent.” Because of the favorable prognosis for the gold finance industry and the undemanding prices that are lower than historical values, it was able to hold onto its buy call.
Bank of America, on the other hand, reiterated its ‘buy’ recommendation while lowering its target price to Rs 220 per share. The firm reduced its consolidated profitability outlook by 3-6 percent to account for moderate AUM growth in Asirvad.
This comes after the RBI discovered questionable activities at some gold finance firms about loans given out in exchange for jewelry and ornaments made of gold that had been pledged.
