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Shares of non-banking financial companies (NBFCs) gained as the Reserve Bank of India has relaxed the rules to sell or securitise their loan books to ease persistent stress in the sector
In a bid to help non-banking finance companies overcome liquidity issues in the backdrop of the IL&FS imbroglio, the Reserve Bank of India has cut the minimum holding period requirement for NBFCs raising funds via securitisation of loans of original maturity above 5 years.
In respect of loans of original maturity above 5 years, the minimum number of instalments to be paid before securitisation is now six monthly instalments (12 earlier) or two quarterly instalments (four).
Dewan Housing Finance Corp Ltd rose as much as 7.4 per cent to Rs 214.8, while Indiabulls Housing Finance Ltd gained as much as 3.4 per cent to Rs 725.
Brokerage Motilal Oswal says this move should be beneficial largely to housing finance companies only, because they have loans of 5-yr+ maturity.
Motilal Oswal says Dewan Housing and Indiabulls Housing will be big beneficiaries among HFCs, since they have higher share of off-balance sheet assets compared to peers and their reliance on sell-downs to raise funds has been greater in these times of tight liquidity
Bajaj Finance Ltd's shares rose as much as 2.3 per cent to Rs 2,564.40, their highest since September 19.
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