RBI Boosts NBFCs!📊🏆

RBI's new rules lifts NBFC stocks and eased borrowing costs. Highlights: 1. Stock Surge: CreditAccess Grameen, Five-Star Business Finance, and L&T Finance soared up to 15%. 2. RBI Notifications: -Microfinance loans as consumer credit now risk-weighted at 100%. -Risk weights for NBFCs (A-rated & above) restored to pre-Nov 2023 levels. 3. Impact on Borrowing Costs: -Credit growth to NBFCs fell from 22.1% (Oct 2023) to 6.6% (Dec 2024). -Borrowing costs may drop by 2-5bps for AAA/AA-rated NBFCs. Today's Winners: Larger NBFCs like CIFC, SBI Card, Five-Star, L&T Finance, and MMFS benefitted the most!