Financials gain post RBI policy; LIC Housing, Can Fin Homes up over 6%

In recognition of the role of the real estate sector in generating employment and economic activity, the RBI has decided to rationalise the risk weights applicable to individual housing loans

Financial sector stocks including banks, non-banking financial companies (NBFCs) and housing finance companies (HFCs) gained ground at the bourses after the Reserve Bank of India (RBI) announced liquidity boositing measures while keeping the key rates unchanged.

In 2018, the RBI put in place a framework for co-origination of loans by banks and a category of Non Banking Financial Companies (NBFCs) for lending to the priority sector, subject to certain conditions. In Friday's policy, the central bank decided to extend the scheme to all NBFCs, including HFCs, in respect of all eligible priority sector loans, and allow greater operational flexibility