Recently the news has come on the internet that shares of banks and non-banking financial companies (NBFC) including Bajaj Finance, ICICI Bank, SBI Card, and HDFC Bank among others saw selling pressure on Friday after the Reserve Bank of India (RBI) drew norms for personal loans and credit cards. Since the news has come on the internet it circulated on other social media platforms. Now thousands of people are searching the news on the internet as they are super curious to know about the whole information. Here we have more information about the news and we will share it with you in this article.
As per the report, the Bank Nifty index fell more than 0.7 percent, while Nifty Financial Services declined more than 0.6 percent in early trade on Friday with SBI Card shares falling the most over 6 percent. The latest risk weight, or the capital that banks require to set aside for every loan, will apply to personal loans for banks and to retail loans for NBFC the RBI stated. The housing, education, vehicle loans, and loans tied to gold and gold jewelry will be banned. Scroll down to the next page for more information about the news.
The fresh norms could have been boosted by the potential risk build-up in these classes after the robust growth seen in these segments post-COVID. Currently, this news has been gaining huge attention from the people as they are super keen to know about the whole information about it. You are on the right page for more information about the news, so please read the complete article.
Negative for banks, NBFCs
Analysts expect the latest norms to make personal loans and credit cards more expensive and may develop in these categories. Nuvama Institutional Equities stated “This is negative for the full sector as it takes away the development several and would improve Cost of Funds (CoF) for NBFCs. Channel checks and the RBI’s FSR indicate that non-SBI PSU banks have high NPLs on unsecured loans even with small exposures,”. Analysts believe that the full banking sector to be impacted as it takes away the development. The most affected banks would be those with fairly low capital or with high exposure. Here we have shared all the information that we had if we get any information then we will update you as soon as possible. Stay connected with us for more updates.