NBFCs have not been the flavour of the season for almost two years, ever since the market was hit by the IL&FS default. But it’s been raining gold for one kind of NBFCs because when the market is volatile, investors flock towards the yellow metal. Naturally, one of the biggest gold loan providers, Manappuram Finance, has been a key beneficiary of this trend. Since the IL&FS crisis, the stock has surged nearly 3x, hitting an all-time high of Rs.194 in the last week of January 2020. Besides the fact that investors are finding this space attractive, the company has also maintained a strong performance in FY20. It posted 30% growth in gold AUM in Q3FY20 while keeping credit cost under check with net NPA at 0.2% of the loan book. The spread on gold financing rose by 80 bps because of the reduction in the cost of funds.