October 19, 2018 / 6:59 AM / 10 months ago

BUZZ-Indian NBFCs fall; RBI allows banks to lend more to some non-banking finance firms

** Shares of Indian non-banking financial companies (NBFCs) drop 9-13 pct

** Reserve Bank of India (RBI) on Friday increased lenders’ single borrower exposure limit for non-infrastructure NBFCs to 15 pct of capital funds

** Dewan Housing Finance Corp Ltd falls as much as 12.5 pct, Edelweiss Financial Services Ltd declines up to 9 pct

** IIFL Holdings Ltd drops as much as 11.6 pct to its lowest since March 30, 2017

** “RBI directive is a signalling factor that they’re comfortable with banks taking exposure to NBFCs and housing finance companies even at the shorter end,” says Alpesh Mehta, deputy head of research at Motilal Oswal Securities Ltd

** “Though the RBI directive will facilitate additional liquidity for NBFCs, it might have a different implication for each of them, depending on what their lenders decide,” says Siddharth Purohit, a senior research analyst at SMC Global Securities

** Up to last close, IIFL stock had declined 35.4 pct this year, Dewan Housing 59.5 pct and Edelweiss had shed 43.6 pct

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