NBFCs slide as tighter CRR rules raise funding concerns
NBFC stocks fell after RBI raised banks’ daily CRR maintenance requirement to 99% from 90%, raising funding-cost concerns. LIC Housing Finance and Shriram Finance futures showed short build-ups, with key open-interest levels framing the near-term trading range.
pre-market1 source ↓machine-written, see hownot a recommendation
- LICHSGFIN close
- ₹535.00
- On the day
- -5.14%
- Futures OI, short build-up
- +13.6%
- Put-call ratio
- 0.69
- Max pain
- ₹535.00
NBFC and housing finance stocks fell on 14 Oct 2026 after investors assessed the Reserve Bank of India’s revised cash reserve ratio maintenance rules. LIC Housing Finance declined 5.13% in the source report, while Shriram Finance fell 4.03% and HDB Financial Services dropped 4.02%. OI Charts data recorded LIC Housing Finance at ₹535.00, down 5.14%, with volume of 6,004,605 shares. Shriram Finance closed at ₹950.00, down 3.85%, on volume of 6,425,399 shares. Cholamandalam Investment and Finance Company, L&T Finance and Tata Capital also traded lower. 📉
The RBI raised the portion of the prescribed CRR that banks must maintain daily to 99%, from 90%, while leaving the statutory CRR unchanged at 3% of net demand and time liabilities. The change does not increase the headline reserve ratio, but it reduces banks’ flexibility to use surplus liquidity during the reporting period. That has raised concerns that bank funding for NBFCs could become less available or more expensive, affecting lenders that rely on borrowings to support loan growth. Banking liquidity 💼 and funding spreads are therefore the key transmission channels for the sector.
Derivatives positioning showed additional near-term pressure in the two actively tracked names. OI Charts data showed a short build-up in LIC Housing Finance futures, with open interest rising 13.6% to 40,452,000 shares; its put-call ratio was 0.69, max pain stood at ₹535.00, and the largest call and put open-interest concentrations were at ₹560.00 and ₹500.00. Shriram Finance futures also showed a short build-up, with open interest up 0.9% to 28,157,250 shares. Its put-call ratio was 0.59, max pain was ₹960.00, and the largest call and put open-interest concentrations were at ₹980.00 and ₹940.00.
Investors will watch whether the revised daily maintenance requirement translates into higher borrowing costs, tighter bank credit or changes in NBFC funding spreads. The next price reference points are ₹500 and ₹560 for LIC Housing Finance, and ₹940 and ₹980 for Shriram Finance, based on the largest put and call open-interest levels. The 27 Oct 2026 derivatives expiry, 13 days away, is the immediate positioning horizon. OI Charts data also showed LIC Housing Finance down 1.3% over 20 sessions, while Shriram Finance was down 3.0% over the same period. ⚖️
Source: India Infoline, 14 Oct 2026
Not investment advice. For informational purposes only.