RBI rule on unsecured loans to hit lenders' capital, loan growth: Analysts

Shares of RBL Bank slipped 9 per cent to Rs 230.555, while those of SBI Cards and Payment Services plunged 7 per cent to Rs 720.40 in intraday trade

The Reserve Bank of India's (RBI's) latest order on unsecured loans is set to hit the banking sector's growth in the near-term, cautioned analysts, as they see banks slowing down on aggressive retail lending. 
 

Besides, cost of funds for non-banking finance companies (NBFC) is expected to inch up as banks will pass on higher capital charge to NBFCs.
 

"We believe the fallout of the RBI action will be mainly on growth, given the rising dependence on unsecured retail loans and lending to NBFCs for growth. Our analysis suggests that a 100bps cut in growth across FY24-26 could impact return on