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SBI, Bajaj Fin, Axis Bank face the heat of unsecured lending norms. What should investors do next?

SBI, Bajaj Fin, Axis Bank face the heat of unsecured lending norms. What should investors do next?
SBI, Bajaj Fin, Axis Bank face the heat of unsecured lending norms. What should investors do next?

Synopsis

After the availability of credit through mobile phone apps and minimal documentation soared, personal loans and credit cards recorded a sharp growth. The risks rose as borrowers opted for multiple loans, forcing the RBI to step in with tightened norms. Growth in the segment may slow down in the medium term. So, what is in store for investors?

The Reserve Bank of India’s move to make margin-accretive unsecured lending costlier has thrown a spanner in the growth prospects of banks and finance companies. Retail loans (home, personal, car loans, etc) and bank loans to non-banking financial companies (NBFCs), are estimated to account for around half of the incremental credit over the last one year. To put this rapid growth in context, take the case of Bajaj Finance. The leading consumer
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The Economic Times