NBFC stocks continue free fall, tank up to 18.5% on liquidity concerns
NBFC stocks continued to slump, dropping up to 18.5 per cent Friday, on liquidity concerns even as the Reserve Bank announced more measures to increase liquidity flows to the non-banking financial companies.
New Delhi: NBFC stocks continued to slump, dropping up to 18.5 per cent Friday, on liquidity concerns even as the Reserve Bank announced more measures to increase liquidity flows to the non-banking financial companies.
Shares of PNB Housing Finance dived 18.55 per cent, Indiabulls Housing Finance plunged 17.06 per cent, DHFL slumped 10.37 per cent, Mahindra & Mahindra Financial Services fell by 3.20 per cent, Ujjivan Financial Services declined by 0.82 per cent and Shriram Transport Finance softened by 0.21 per cent on the BSE.
Shares of non-banking financial companies (NBFCs) had seen massive selling pressure Wednesday also. Stock markets were closed Thursday for Dussehra.
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The RBI permitted banks to use the government securities equal to their incremental outstanding credit to the NBFCs, over and above their outstanding credit to them as on October 19, to be used to meet liquidity coverage ratio requirements.
The move will help provide liquidity to housing finance companies (HFCs) and non-banking finance companies (NBFCs), which have come under pressure following series of default by IL&FS group companies.