NBFCS
RBI still assessing revolving credit norms: Sanjay Malhotra
Reserve Bank of India governor Sanjay Malhotra has indicated that regulations on revolving credit by non-banking finance companies are under review. The RBI issued draft norms limiting NBFCs to term loans without revolving credit options. Malhotra said that systemic risks linked to these changes will be thoroughly evaluated before reaching a decision.
NBFC services to banks will attract 18% GST
The interest on the underlying loan will remain exempt from GST. The 18% levy will apply to the taxable service supplied by the NBFC to the bank in the co-lending arrangement. The committee also decided to align the valuation of the NBFC's service with the methodology prescribed by the Reserve Bank of India.
Margin boost: Jefferies picks 3 bank stocks to gain the most from RBI rate hikes
Jefferies expects RBI’s 25-basis-point rate hike and calibrated tightening stance to support bank earnings, particularly ICICI Bank, SBI and Axis Bank. Faster loan repricing could drive margin expansion, while smaller private banks, NBFCs and life insurers may face greater pressure.
RBI hikes repo rate by 25 bps: How are rate sensitive stocks, sectors faring after first increase in nearly 4 years?
Banking, NBFCs, realty and auto stocks came under pressure after the RBI raised the repo rate by 25 basis points to 5.50% and shifted its stance to calibrated tightening. The rate hike, the first in four years, comes amid elevated crude prices, rising global bond yields, inflation concerns and sustained foreign outflows.
NBFC credit growth rises to 15.8% in August as gold, consumer durable loans surge
During August 2026, non-banking financial companies enjoyed a boost in credit expansion, with gold loans seeing remarkable growth alongside consumer durable loans. Housing loans remained a critical component of the retail lending portfolio. Conversely, lending to the services sector declined, highlighting slower growth in certain segments. This overall increase in several sectors points to an encouraging trend in the credit market.
Jefferies favours Indian largecap stocks amid rising bond yields
Jefferies has suggested enhancing investments in large-cap stocks in India, citing their favorable valuations compared to midcaps. The brokerage has also added Kotak Mahindra Bank to its model portfolio and increased its weight in Reliance Industries. It emphasizes that large-caps present a better risk-reward scenario as earnings growth gap narrows. Meanwhile, exposure to rate-sensitive sectors has been reduced due to rising global bond yields.
Reliance Industries shares gain 3% as JIO IPO inches closer; Jefferies increases weight in conglomerate
Reliance Industries is preparing for the IPO of Jio Platforms scheduled to launch on October 21. The valuation of Jio Platforms is reported at Rs 11 lakh crore, making it highly anticipated. The public issue is expected to attract significant attention as it opens for subscription. Jefferies has raised its weight on Reliance Industries due to attractive valuations amid improving conditions.
Banks vs NBFCs: Which stocks could benefit as RBI eyes rate hike for first time in 3 years?
The RBI’s expected first rate hike in three years could have a mixed impact on banks and NBFCs. While higher funding costs may pressure NBFC margins, lenders with floating-rate assets and strong liquidity could benefit. Brokerages favour HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and Tata Capital.
How Jefferies is reshuffling its portfolio as soaring bond yields give Nifty bulls sleepless nights
Jefferies is favouring largecaps as rising bond yields pressure Indian equities, citing relatively attractive valuations and a narrowing earnings gap with midcaps. The brokerage has added Kotak Mahindra Bank and Reliance Industries to its preferred portfolio.
National Housing Bank likely to double affordable housing outlay for HFCs this fiscal
National Housing Bank plans to double the refinance and affordable housing funds for large housing finance companies. These funds will be available to companies seeking long-term and cheaper financing options. LIC Housing Finance, Bajaj Housing Finance, and others are likely to benefit from this increase. The funding is expected to help reduce reliance on banks while promoting growth in housing loans.
NBFCs account for nearly half of small loans while delinquencies stay low
Non-banking finance companies accounted for nearly half of new-to-credit loans below Rs 2 lakh as of June 2026. Their retail delinquency rate remained lower than the overall industry average, reflecting improved asset quality. Monitoring credit positively impacted borrowers' cure rates compared to those who did not monitor. The customer base for NBFCs grew significantly over the last decade, indicating increasing access to credit.
Next financial crisis may stem from cyberattack or geopolitical shock, RBI governor says
RBI Governor Sanjay Malhotra said the next financial crisis may be triggered by geopolitical shocks, cyberattacks or technology failures rather than the banking system itself, calling for stronger resilience across markets, payments, non-banks and critical infrastructure. He said India’s financial system remains strong, but warned that “today’s resilience” does not guarantee immunity from future shocks.
RBI rate hike unlikely to trigger broad-based NBFC asset quality stress: Report
A report from Nuvama Institutional Equities indicates that a potential RBI rate hike may not significantly stress NBFC asset quality. Past trends suggest that rate increases alone typically do not lead to widespread deterioration. Current impacts from the West Asia conflict have been limited to specific segments and are not broadly felt. Additionally, healthy capital buffers and systemic liquidity are expected to mitigate potential risks.
RBI Governor Sanjay Malhotra flags rising financial risks, warns against complacency as West Asia conflict adds to inflation pressure
Sanjay Malhotra highlighted the need for vigilance regarding financial vulnerabilities at the Kautilya Economic Conclave. He emphasized that banking and financial stress can develop suddenly yet take years to resolve. Malhotra pointed out the interplay of geopolitical and economic factors complicating current financial stability predictions. He stressed the Reserve Bank of India's role in maintaining financial resilience through appropriate regulations and supervision.
Share of new-to-credit customers rises to 50% in June 2026 from 24% in June 2016: TransUnion CIBIL-FIDC report
NBFCs now account for half of India’s new-to-credit (NTC) borrowers, up from 24% in 2016, according to a TransUnion CIBIL-FIDC report covering about 2,000 NBFCs.
RBI appoints Sudhakar Malli as Executive Director with effect from October 1
The Reserve Bank of India has appointed Sudhakar Malli as Executive Director with effect from October 1. Malli, previously Chief General Manager-in-Charge of the Department of Supervision, will oversee its Supervisory Assessment function. A career central banker with around three decades of experience, he has extensive domestic and overseas supervisory experience.
Bigger loans lift digital lenders’ books 28% as outstanding accounts decline
Digital lenders in India experienced a notable 28% increase in their personal-loan portfolios over the past year. The number of outstanding loan accounts slightly decreased to 5.64 crore, indicating a shift towards larger balances. New loan sanctions also surged by 50%, highlighting a strong demand for personal loans. Borrowers with limited credit histories and younger customers contributed significantly to this growth.
IRDAI’s commission crackdown: Why insurers may cope but distributors face a tougher test
Transformations are on the horizon for India's insurance industry, with new proposals from the Insurance Regulatory and Development Authority of India aiming to streamline product distribution and limit commissions. These changes could lead to lower insurance premiums, but distributors heavily reliant on commissions might struggle. Insurers like SBI Life, known for their efficient low commission rates, may adapt more easily.
Holding companies, NBFCs rejig assets, income to escape RBI scrutiny
Groups are restructuring NBFC and holding-company balance sheets to stay outside RBI’s regulatory definitions and avoid registration and compliance requirements, sources said. NBFCs are boosting non-financial income, while CICs are changing their asset mix.
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