Shares of Bajaj Finance Ltd. SBI Card and Payment Services Ltd. and RBL Bank rallied up to 4% on Friday, June 6, after the Reserve Bank of India policy decision, where the central bank Governor spoke about stress in the credit card ecosystem.
In his policy address, RBI Governor Sanjay Malhotra said that the stress witnessed earlier in retail segments like unsecured personal loans and credit card receivables portfolio has abated.
However, the Governor did add that the stress in he microfinance segments continues to persist.
"Banks and NBFCs active in these segments are already recalibrating their business models, strengthening their credit underwriting practices
and stepping up their collection efforts to avoid any excessive build-up of risks on this front in future," Governor Malhotra said in his speech.
The Credit Card business is a significant part of RBL Bank's overall book and the earlier stress had dragged the stock down by 46% from its 52-week high.
The stress coming down in the unsecured loans is a positive for India's largest NBFC, Bajaj Finance, whose shares have also rallied 4.2% to ₹9,313 and are heading back towards their all-time high levels of ₹9,660.
Shares of SBI Cards are trading 4% higher on Friday at ₹982.9, having made a new all-time high of ₹986. The stock has risen 10% in the last one month.
Shares of RBL Bank are also trading 3.5% higher at ₹214.1, and have risen 9% in the last one month. The stock though remains below its recent 52-week high of ₹270.
In his policy address, RBI Governor Sanjay Malhotra said that the stress witnessed earlier in retail segments like unsecured personal loans and credit card receivables portfolio has abated.
However, the Governor did add that the stress in he microfinance segments continues to persist.
"Banks and NBFCs active in these segments are already recalibrating their business models, strengthening their credit underwriting practices
and stepping up their collection efforts to avoid any excessive build-up of risks on this front in future," Governor Malhotra said in his speech.
The Credit Card business is a significant part of RBL Bank's overall book and the earlier stress had dragged the stock down by 46% from its 52-week high.
The stress coming down in the unsecured loans is a positive for India's largest NBFC, Bajaj Finance, whose shares have also rallied 4.2% to ₹9,313 and are heading back towards their all-time high levels of ₹9,660.
Shares of SBI Cards are trading 4% higher on Friday at ₹982.9, having made a new all-time high of ₹986. The stock has risen 10% in the last one month.
Shares of RBL Bank are also trading 3.5% higher at ₹214.1, and have risen 9% in the last one month. The stock though remains below its recent 52-week high of ₹270.
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