Street View: Insurance curbs cast long shadow on PB Fintech
BUZZ-Street View: Insurance curbs cast long shadow on PB Fintech Sept 25 (Reuters) - ** PB Fintech PBFI.NS expects India's proposed caps on insurance commissions to affect its non-life insurance business, leading to spending cuts and a hiring slowdown
** Stock down 2.5% on Friday after plunging 36% on Thursday and wiping $3 bln off its market cap
REGULATORY CLOUD DEEPENS
** Ambit Capital removes stock from its model portfolio, says PB's commission could decline about 40% in FY28 under the proposed framework, with health insurance most exposed
** HSBC ("Hold", PT: 1,150 rupees) cuts FY28-FY29 EPS estimates by 56%-17%, and sees ongoing regulatory uncertainty keeping pressure on the stock
** BofA Securities ("Neutral", PT: 1,410 rupees) says draft proposals create uncertainty around PB's growth and margin trajectory
** Nomura ("Neutral") says PB is shifting from a "growth-at-any-cost" approach to a more rationalised approach
(Reporting by Kashish Tandon in Bengaluru)
((kashish.tandon@thomsonreuters.com; 8800437922))
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Street View: Insurance curbs cast long shadow on PB Fintech