NBFC Stocks Sink On RBI's Plans To Strengthen Asset-Liability Norms; DHFL, Edelweiss Hit 52-Week Low

Some select non-banking financial companies (NBFCs) lost ground in intra-day trade on Monday after the central bank in its Friday meet said to address asset-liability mismatch of non-banking lenders in the wake of IL&FS crisis.

Shares of Dewan Housing Finance Limited (DHFL) extended their losing run for the fourth straight session, declining to a new 52-week low of Rs. 205 on the BSE. Stock was last quoting lower by 19.61% at Rs. 220.40.

Edelweiss Financial Services also retreated to a 52-week low of Rs 148.70, plunging by over 15 percent.

In a note CLSA analysts said the RBI will tighten guidelines for NBFC companies to avoid risk as several of them are becoming systemically important and there is heavy reliance on short-term funding sources such as mutual funds, commercial papers etc.

Other NBFC stocks like Aditya Birla Money and Indiabulls Ventures also ended the day lower by 5%.

The increased pressure on NBFC companies is imminent for past few days due to concerns of rise in borrowing costs post the IL&FS fiasco.

Goodreturns.in