“People are still not seeing any concern or any deterioration in terms of asset quality as far as the unsecured loans are concerned. So, to my mind, this is a precautionary measure by the RBI, a welcome precautionary measure, given that this kind of lending has increased so much in the system.”
The impact of RBI s tightening was felt across stocks of most banks and non-banking financial companies (NBFCs). Shares of SBI Card fell up to 7% to Rs 720.40, Bajaj Finance was down 3% to Rs 7122.05, while Paytm fell 4% to Rs 870.20. Among banks, IDFC First Bank fell over 3%, while PNB, Axis Bank, SBI and Bandhan Bank were trading around 2-3% lower.