Relaxed norms likely to hurt NBFCs in long run\, banks stand to gain

Relaxed norms likely to hurt NBFCs in long run, banks stand to gain

Revised securitisation regulations may bring relief of Rs 1 trillion, but could impact ALM and asset quality

Hamsini Karthik 

It was flashing green for mid- and small-cap non-banking financial company (NBFC) stocks on Friday. Dewan Housing, Indiabulls Housing Finance, Repco Home Finance, Gruh Finance, and Sundaram Finance gained 2-8 per cent on Friday, reacting to the regulatory relief pertaining to securitisation or sell-down of loans.

The new norms came in after market hours on Thursday. Given that Dewan Housing and Indiabulls Housing sell down about 10-17 per cent of their book, the Reserve Bank of India’s (RBI) move to reduce the minimum holding period to six months from the earlier 12 on loans ...

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First Published: Fri, November 30 2018. 23:34 IST