Indian non-lending financials 'safer' as RBI tightens lending norms - Jefferies

Kfin Technologies

23/11/2023 04:44

** Indian non-lending financials like insurers, asset
managers, registrar and transfer agents and cash management
firms may be safer spots after cenbank tightened norms on
unsecured loans - brokerage Jefferies
    ** RBI governor on Wednesday said banks and non-bank lenders
(NBFCs) should avoid exuberance and focus on asset and liability
management
    ** RBI governor also said NBFCs should diversify funding
sources and reduce dependence on bank loans
    ** Comments come a week after RBI tightened norms on
unsecured loans by more than analysts expected, slamming shares
of lenders
    ** Slower loan growth can pose some risk to earnings of
banks, NBFCs; non-lending financials are better insulated -
Jefferies
    ** Brokerage likes HDFC Life  HDFL.NS  (up 0.6%), ICICI
Prudential  ICIR.NS  (up 0.2%) among insurers, HDFC Asset
Management  HDFA.NS  (up 0.5%) among asset managers, Computer
Age Management Services  COMU.NS  (up 2.3%) and KFin
Technologies  KFIN.NS  (up 0.1%) among small caps

 (Reporting by Chris Thomas in Bengaluru)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))