NBFC shares including Bandhan Bank rose over 12% post RBI circular on risk weightage
On Tuesday, the Reserve Bank of India declared that, as of April 1, 2025, the risk weights for banks lending to NBFCs have been reinstated to 100% from 125%.
NBFC shares including Bandhan Bank rose over 12 post RBI circular on risk weightage
On Thursday, February 27, shares of key NBFCs, such as CreditAccess Grameen, were up as high as 12%, while Bandhan Bank's shares were up around 8% following the RBI's recent announcement on risk weighting. RBI Bank and Cholamandalam Finance's shares are up 5% each, while L&T Finance's is up 6%.
Gains of 3% to 4% are also being seen by AU Small Finance Bank, Shriram Finance, Aditya Birla Capital, M&M Finance, and Poonawalla Fincorp.
On Tuesday, the Reserve Bank of India declared that, as of April 1, 2025, the risk weights for banks lending to NBFCs have been reinstated to 100% from 125%.
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The central bank has also exempted microfinance loans by banks from higher risk weight. The RBI, in November 2023, increased risk weights on consumer credit, including personal loans and bank credit to NBFCs, from 100% to 125%.
All microfinance loans extended by rural regional banks and local area banks would also attract a risk weight of 100%.
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