India's Piramal, Indiabulls gain as RBI eases rules for investments in AIFs

Sammaan Capital

28/03/2024 05:22

** Shares of Piramal Enterprises  PIRA.NS  rise as much as
~6% to 889.95 rupees, Indiabulls Housing Finance  INBF.NS  up
~4%
    ** India's central bank on Wednesday eased its
recently-tightened rules for lenders regarding investments in
alternative investment funds (AIFs)
    ** Select private banks and NBFCs like Piramal had provided
for their entire AIF exposure during Q3 and could see some
write-backs in Q4 - Jefferies 
    ** Adds, if PIRA reverses its entire additional provision,
potential write-back could be around 18 bln rupees ($216 mln)
    ** Indiabulls group provided 8.67 billion rupees as
provision for investments in AIF during Q3
    ** PIRA had reported a loss of 23.78 bln rupees in Q3 vs
profit a year ago due to higher provisions 
    ** PIRA is down ~7.5% YTD, after rising ~12.5% in 2023


($1 = 83.3660 Indian rupees)

 (Reporitng by Nishit Navin)
 ((nishit.navin@thomsonreuters.com;))