NBFC counters rise as RBI extends NPA norms compliance date
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Shares in the NBFC space have shown a healthy gains on Wednesday as the RBI provided an extension for the implementation of the new NPA rules.
The RBI on Tuesday extended the deadline for non-banking financial companies to comply with new asset classification norms issued on November 12, 2021, allowing non-bank lenders to move to the new rules for recognising bad loans by September 30, 2022.
The earlier deadline was March 31, 2022.
Shares of M&M Financial rose around 8 to 9 per cent in the early trade on Wednesday to later pare some of its gains and settle at 4.5 per cent higher at Rs 160.6 per share.
Power Finance Corporation shares over rose 2.2 per cent, Shriram Transport Finance Co rose around 4 per cent, Bajaj Finance over 1 percent, and L&T Finance Holdings over 3 per cent.
By the end of the session, however, most of them pared some of initial gains.
