Shares of twelve NBFCs rose after the Finance Minister announced various measures to aid the economy.
Finance Minister Nirmala Sitharaman after market hours on Friday, 23 August 2019, announced a slew of measures to revive economy to arrest the ongoing economic slowdown in the economy.
To support to non-banking financial companies (NBFCs) and housing finance companies (HFCs), FM announced more credit support for purchase of houses, vehicles, consumption goods. As part of the measures, the government announced additional liquidity support to HFCs Rs 20,000 crore by National Housing Bank (NHB) thereby increasing it to Rs 30,000 crore.
FM also announced partial credit guarantee scheme for purchase of pooled assets of NBFCs/HFCs upto Rs 1 lakh crore - to be monitored at highest level in each bank.
Further, prepayment notices issued to NBFCs will be monitored by banks.
NBFCs are now permitted to use the Aadhaar authenticated bank know your customer (KYC) to avoid repeated processes. Necessary changes will be made in Prevention of Money Laundering Act (PMLA) rules and Aadhaar regulations.
To take advantage of liquidity with public sector banks and last mile customer connect of NBFCs, public sector banks will fast track collaboration for loans to Micro, Small and Medium Enterprises (MSMEs), small traders self help groups, Microfinance Institutions (MFI) clients borrowers in co-origination mode with NBFCs.
Among non-banking financial companies, Indiabulls Housing Finance (up 4.1%), Mahindra & Mahindra Financial Services (up 3.79%), Edelweiss Financial Services (up 3.47%), Muthoot Capital Services (up 2.49%), Shriram Transport Finance Corporation (up 2.45%), IIFL Holdings (up 2.13%), Bajaj Finserv (up 1.99%), Cholamandalam Investment and Finance Company (up 1.84%), Bajaj Finance (up 1.76%), Manappuram Finance (up 1.67%), Muthoot Finance (up 1.16%), LIC Housing Finance (up 0.79%) and IDFC (up 0.45%) advanced.
Among housing finance companies, Dewan Housing Finance Corporation (up 4.54%), Indiabulls Housing Finance (up 2.97%), HDFC (up 2.68%), GIC Housing Finance (up 2.05%), PNB Housing Finance (up 1.85%), Can Fin Homes (up 1.7%), LIC Housing Finance (up 0.62%) and GRUH Finance (up 0.36%) edged higher.
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