Manappuram Finance plunges 17% on RBI notice
He said that the performance of the Indian economy was much better than other economies. However, he said that the government needs to provide a road map for cutting the fiscal deficit.
Manappuram Finance plunged 17 per cent on the bourses today. The Reserve Bank of India on Monday said Manappuram Finance Ltd was not permitted by law to accept or renew deposits from the public. However the RBI notice does not impact core business of loans against gold of the company.
Why has the stock plunged?
Manappuram Finance not allowed to accept or renew public deposits
Manappuram Finance no longer a deposit taking entity
Manappuram Finance found issuing fixed deposit receipts in name of Manappuram Agro Farms
Manappuram Agro Farms also prohibited from taking deposits
What the company says
Writing to the RBI for clarification
Have repaid all deposits taken by company
Some customers asked for deposits to be converted
Thought that Manappuram Agro was permitted to take deposits under Sec 45-S
Manappuram Finance to NDTV Profit:
"Manappuram finance is not linked with any promoter run companies. It does not have any P&L or balance sheet linkages with these companies. Manappuram finance has not accepted any public deposit after March 2011," I Unnikrishnan, MD, Manappuram General Finance & Leasing Ltd told NDTV Profit today.
"The board will meet on 10 February to discuss the corporate governance standards... This incidence not to impact credit rating of the company," he added.