 "Financial shares under pressure; Bharat Financial hits eight-month low")
Shares of financial companies mainly non-banking finance companies (NBFCs) and micro-finance institutions (MFIs) were trading under pressure, falling by up to 8% on the bourses.
Bharat Financial Inclusion, Ujjivan Financial Services, Manappuram Finance, L&T Finance Holdings, Mahindra & Mahindra Financial Services, Repco Home Finance and Bajaj Finance from the financials were down between 3% and 8% on the National Stock Exchange (NSE).
State Bank of India (SBI), Allahabad Bank, Indian Bank, Syndicate Bank, IDBI Bank, Uco Bank, Union Bank of India, ICICI Bank and Corporation Bank from the banking was quoting lower in the range of 3% to 4% on the NSE.
At 01:51 pm; Nifty PSU Bank index was down 3%, while Nifty Bank, Nifty Private Bank and Nifty Financial Services indices down 1% each as compared to 0.49% decline in the benchmark Nifty 50 index.
Bharat Financial Inclusion has dipped 8% to Rs 556, hitting eight-month low on the NSE. The stock was trading at its lowest level since April 20, 2016.
According to Press Trust of India report, Maharashtra government on Saturday, December 17, 2016 announced that a special investigation team (SIT) will be formed to investigate the alleged violations of RBI guidelines and exploitation of women by micro-finance institutions (MFIs) in the state. CLICK HERE TO READ FULL REPORT
Since November 8, post demonetization, the stock plunged 32% as compared to 5.6% decline in the Nifty 50 index.
Analysts at Religar Institutional Research maintain negative stance on the microfinance sector.
“Collections across regions are likely to suffer with demonetisation and election-led defaults. Further, as a large chunk of borrowers are overleveraged, delinquencies can go up meaningfully. Disbursements and asset quality are inversely correlated (lower disbursements lead to higher NPAs and vice versa) in the unsecured lending segment. Lower disbursements to overleveraged borrowers could result in massive loan write-offs for MFIs and erode a substantial part (or all) of their net worth,” the brokerage firm said in a recent report.
Bharat Financial Inclusion, Ujjivan Financial Services, Manappuram Finance, L&T Finance Holdings, Mahindra & Mahindra Financial Services, Repco Home Finance and Bajaj Finance from the financials were down between 3% and 8% on the National Stock Exchange (NSE).
State Bank of India (SBI), Allahabad Bank, Indian Bank, Syndicate Bank, IDBI Bank, Uco Bank, Union Bank of India, ICICI Bank and Corporation Bank from the banking was quoting lower in the range of 3% to 4% on the NSE.
At 01:51 pm; Nifty PSU Bank index was down 3%, while Nifty Bank, Nifty Private Bank and Nifty Financial Services indices down 1% each as compared to 0.49% decline in the benchmark Nifty 50 index.
Bharat Financial Inclusion has dipped 8% to Rs 556, hitting eight-month low on the NSE. The stock was trading at its lowest level since April 20, 2016.
According to Press Trust of India report, Maharashtra government on Saturday, December 17, 2016 announced that a special investigation team (SIT) will be formed to investigate the alleged violations of RBI guidelines and exploitation of women by micro-finance institutions (MFIs) in the state. CLICK HERE TO READ FULL REPORT
Since November 8, post demonetization, the stock plunged 32% as compared to 5.6% decline in the Nifty 50 index.
Analysts at Religar Institutional Research maintain negative stance on the microfinance sector.
“Collections across regions are likely to suffer with demonetisation and election-led defaults. Further, as a large chunk of borrowers are overleveraged, delinquencies can go up meaningfully. Disbursements and asset quality are inversely correlated (lower disbursements lead to higher NPAs and vice versa) in the unsecured lending segment. Lower disbursements to overleveraged borrowers could result in massive loan write-offs for MFIs and erode a substantial part (or all) of their net worth,” the brokerage firm said in a recent report.
| Company | 08/11/2016 | LTP | % chg |
| Manappuram Fin. | 102.80 | 60.60 | -41.05 |
| Bharat Financial | 824.70 | 559.70 | -32.13 |
| Repco Home Fin | 722.25 | 502.70 | -30.40 |
| Ujjivan Fin.Ser. | 436.00 | 310.35 | -28.82 |
| M & M Fin. Serv. | 345.90 | 249.70 | -27.81 |
| Muthoot Finance | 362.90 | 265.20 | -26.92 |
| Shri.City Union. | 2422.15 | 1783.45 | -26.37 |
| JM Financial | 87.05 | 64.40 | -26.02 |
| Yamini Invest | 33.00 | 24.80 | -24.85 |
| Dewan Hsg. Fin. | 313.75 | 236.00 | -24.78 |
| Capital First | 689.40 | 526.00 | -23.70 |
| Shriram Trans. | 1054.85 | 810.75 | -23.14 |
| L&T Fin.Holdings | 103.75 | 81.70 | -21.25 |
| Cholaman.Inv.&Fn | 1108.40 | 881.50 | -20.47 |
| Edelweiss.Fin. | 111.45 | 89.25 | -19.92 |
| GIC Housing Fin | 322.70 | 259.60 | -19.55 |
| Bajaj Fin. | 983.85 | 794.55 | -19.24 |
| Indiabulls Hous. | 786.90 | 635.50 | -19.24 |
| DCB Bank | 130.00 | 106.85 | -17.81 |
| I D F C | 63.15 | 52.50 | -16.86 |
| Nifty 50 | 8543.55 | 8064.90 | -5.60 |
