# BofA picks Muthoot, IIFL bonds over Shriram, Manappuram 2026-08-25T06:04:29+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Bank of America has retained an 'Overweight' rating on bonds of Muthoot Finance and IIFL Finance, citing strong earnings momentum and attractive spreads. The brokerage has kept Muthoot Finance and IIFL Finance as its top gold-loan NBFC picks for Q1, while passing over Shriram Finance, Manappuram Finance, Piramal Finance, and Sammaan Capital. BofA noted that gold-loan NBFCs are outperforming diversified lenders in the June quarter. The overweight ratings reflect expectations of continued earnings growth in the gold-loan segment, where loan demand is supported by rising gold prices. The report did not assign specific ratings to the other four NBFCs. ## Indian Opinion Analysis BofA's preference for Muthoot and IIFL over Shriram and Manappuram reflects the market's increasing focus on gold-loan NBFCs. These lenders benefit directly from rising gold prices, which boost collateral values and loan growth, unlike diversified NBFCs such as Shriram Finance. A key differentiator is asset quality: gold-loan portfolios have low credit risk because loans are fully secured, and non-performing assets remain negligible compared to unsecured or vehicle-loan books. Under the RBI's 2014 framework for gold-loan NBFCs, loan-to-value ratios are capped at 75%, capping downside risk. The next performance checkpoint will be the RBI's December 2024 financial stability report, which will disclose sectoral NPA trends and gold-price sensitivity across NBFCs. ## Coverage - ndtvprofit.com Led with broker's positive sector call, no critical counterpoint reported This story was synthesised by AI from the source linked above. Tags: Bank of America, gold loan, IIFL Finance, Muthoot Finance, NBFC Canonical: https://indianopinion.org/bofa-picks-muthoot-iifl-bonds-over-shriram-manappuram/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/bofa-picks-muthoot-iifl-bonds-over-shriram-manappuram/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/