Manappuram Finance, the second largest gold loan lender, is underperforming the market for various reasons. Lacklustre numbers for the fourth quarter of 2020-21 is the first reason. For instance, its gold loan AUM fell by 6% q-o-q. Gold loan defaults have correlation to prevailing gold prices—defaults will be lower when gold prices go up and will be higher when gold prices come down. With 12% q-o-q decline and 21% decline from peak levels

Read more: EconomicTimes

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