Interest rate hike may pressure NBFC profits, boost housing finance
pre-market1 source ↓written by the desknot a recommendation
- may lead
- 50-basis-point rise
A potential increase in the Reserve Bank of India's repo rate could pressure NBFC profitability, especially for vehicle financiers and microfinance lenders. JM Financial estimates a 50-basis-point rise may lead to a decline in profits due to rising borrowing costs. Conversely, housing finance companies could see gains from higher rates, benefiting from their lending structures.
Not investment advice. For informational purposes only.