Jefferies flags earnings risk for Indian non-bank lenders from insurance commission curbs
BUZZ-Jefferies flags earnings risk for Indian non-bank lenders from insurance commission curbs ** Insurance regulator's proposal for tighter commission norms and 50%-55% commissions cuts depending on insurance products from FY2028 will dent earnings of non-bank lenders, according to analysts at Jefferies
** NBFCs derive part of their fee income from insurance distribution and should be negatively impacted, if the proposals are implemented, according to the brokerage
** Among major NBFCs, L&T Finance LTFL.NS, Piramal Finance PIRL.NS and Cholamandalam Investment CHLA.NS have higher exposure to insurance and could be hurt more, says Jefferies
** Shriram Finance SHMF.NS has lower exposure based on FY2026 insurance commission/FY2027 profit, according to Jefferies
** LTFL, PIRL, CHLA, Bajaj Finance BJFN.NS down 5.2%-9.2%, dragging financial services index .NIFTYFIN 2.5% lower; SHMF down 2%, according to exchange data
(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))
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