In the first monetary policy after the Union budget 2021, the Reserve Bank of India, governor, Shaktikanta Das announced a slew of measures to enhance liquidity support to targeted sectors and liquidity management. One such move was extension of Targeted Long Term Repo Operations (TLTRO) to non-banking finance companies (NBFCs). But this lending is to the specified stressed sectors, the Governor stated. However, post that announcement shares of some major NBFCs were down by more than 2 per cent.
RBI Governor Shaktikanta Das said during the monetary policy announcement, said,"NBFCs are well recognised conduits in reaching out to the last mile in various sectors, it is now proposed to provide funds from banks under the TLTRO on Tap scheme to NBFCs for incremental lending to the specified stressed sectors.”
While the financial and banking index were trading in green, some NBFCs like M&M Financials, Muthoot Finance, Shriram City, Shriram Transport Finance Company, Satin Credit among others were trading in red. Bajaj Finserv and Bajaj Finance were up more than 1 per cent.
Among the banks, State Bank of India’s share zooms by 14 per cent. This is despite the fact the state-run lender reported a drop in net profit on Thursday (February 4).
