Key Points
With the RBI signalling lenders to slow down growth by increasing risk weight by 25% on consumer credit, shares of Paytm, Bajaj Finance and SBI Cards were among the worst in the market today and fell up to 7%...
The impact of RBI's tightening was felt across stocks of most banks and non-banking financial companies (NBFCs)..
Industry watchers say RBI tightening was more than expected as it encapsulated all forms of unsecured loans not just below Rs 50,000 loans which was a segment that RBI was most worried about.. "While most lenders are well-funded, impact is highest for SBI Card & Bajaj Finance, followed by larger private banks & select PSUs..
Banks may tighten norms/raise rates; Paytm may see earnings risk if partners tighten," Jefferies said.. Analysis of segment-wise exposure of banks indicates that banks will see a 50-60bps impact on Tier I CAR due to a rise in risk weights on personal loans, credit card dues and loans to NBFCs..
The RBI has also increased risk weight for banks lending to NBFCs by 25%, excluding loans to housing finance companies (HFCs) and loans to NBFCs, which are eligible for classification as priority sector...
