Bank, NBFC stocks plunge as RBI tightens personal loan norms
时间:2024-06-26 08:15:49 阅读(143)
It was a freaky Friday for non-banking financial companies (NBFCs) and certain banks, as the Reserve Bank of India’s (RBI) decision to raise risk weights on unsecured loans dragged their stocks down.
RBL Bank, Satin Creditcare and Aditya Birla Capital were the major losers, plunging 7.7%, 6.2%, and 5.7%, respectively. Bajaj Finance declined 2%. Among the fintech giants, SBI Card declined 5.2% and Paytm 1.9%.
Sectorally, the Bank Nifty shed close to 1.5%, while the Nifty Financial Services fell 0.9%. PSU banks took a bigger hit than their private peers. The Nifty PSU Bank index slid 2.4%, while the Nifty private bank index fell 1.3%.
SBI was the biggest loser, falling 3.7% on the Nifty, while Punjab & Sind Bank was the only PSU counter to close marginally in the green. Among the private names — besides RBL Bank — Axis Bank and IDFC First Bank shed more than 3% each. All private banks closed in the red.
“Companies that have a strong credit rating and thus the ability to raise money easily won’t be much impacted, such as Bajaj Finance. The hit will be on those NBFCs that borrow from banks,” Deven Choksey, MD at DRChoksey Finserv, said.
Insurance and mutual fund stocks, however, made gains. SBI Life was up almost 3.8%, ICICI Lombard more than 3%, while HDFC AMC jumped more than 3.1%. HDFC Life also rose 2.4%, while ICICI Prudential gained close to 2%.
According to Choksey, investors shifted money from banking stocks to insurance and asset management companies. Insurers are benefiting because premium collection is on the higher side, and AMCs because of the rising assets under management or AUM figures.
“Specifically, EQ SFB/AU Bank is expected to experience minimal-to-no impact. Conversely, RBL may witness an approximately 80 bps impact owing to its significant exposure in the credit card business. Likewise, Ujjivan and Suryoday are projected to encounter a more substantial impact, with approximately 126 bps and 193 bps, respectively, owing to their individual lending business models,” a note by Centrum said.
RBI on Thursday raised the risk weight on consumption loans, credit card exposures and loans to NBFCs by 25 percentage points each, in a move to curb the fast growth of unsecured lending. This will lead to higher cost of capital, as lenders will try to cover up for the increase in capital requirement.
猜你喜欢
- Sensex, Nifty end volatile session in red, consolidation continues; be stock specific, look for global cues
- Number of UHNWIs in India dip to 12,069 in 2022, to rise to 19,119 in 5 years- Knight Frank
- Sensex, Nifty open in red amid weak global cues; HUL shares fall 3%, Asian Paints shares plunge over 1%
- Sensex surges 500 pts, Nifty trades above 17800 in early trade on Wednesday, Feb 1; Coal India, ACC shares fall
- NSE Bulk deals, January 11- CIGNITITEC, SALZERELEC, UMA and other major deals that took place on Wednesday
- SEC chair denies a Bitcoin ETF has been approved, says account on X was hacked
- d that milk prices are unlikely to witness spikes in the coming months due to cooler temperature in April and parts of May, which has delayed the onset of ‘lean’ season, when milk production usually drops.
Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022. Despite India being the largest milk producer since 1998, the commodity has been the second biggest factor after cereals such as rice and wheat in driving up retail inflation in the last fiscal.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
Industry sources said feed cost, which has a share of more than 65% in the cost of production of milk, has increased to Rs 20/kg from Rs 8 a year ago. The finance ministry in April had attributed the elevated milk inflation to a demand supply mismatch and said it could be one of the factors apart from volatile international crude oil prices and constrained supplies of milk would influence the country’s inflation trajectory.
“Milk production has been impacted by a lumpy skin disease infecting millions of cattle in late 2022,” the ministry said in the monthly economic review, adding that the vaccination drive against the disease is expected to curb the spread and immune the cattle against the skin disease.
According to official data, currently India is the world’s largest milk producer, and has a share of 23% in global milk production. For the first time in decades, the country’s milk production is likely to have stagnated in 2022-23 due to Lumpy Skin Disease in cattle across several states and the lagged effect of Covid-19 in the form of stunting of the animals, a senior official with department of animal husbandry and dairying recently had stated. The milk production was estimated at 221 million tonne in 2021-22.
- Second edition of ASDC National Automobile Olympiad concludes with diverse participation of students
- TVS Motor, ITC, IDFC First Bank among 97 NSE stocks to hit 52-week highs; 31 touch 52-week lows