NBFC stocks under pressure, DHFL slumps 18.5 pc

Shares of NBFCs fell up to 18.5 per cent Monday after the Reserve Bank said it is looking at strengthening the guidelines to avoid situations of asset liability mismatch (ALM) by non-banking lenders.

The scrip of DHFL crashed 18.52 per cent, Edelweiss Financial Services 13.67 per cent, Shriram City Union Finance 6.82 per cent, Cholamandalam Investment and Finance Company 6.07 per cent, Muthoot Capital Services 4.48 per cent and Motilal Oswal Financial Services 2.48 per cent on the BSE.

Among others, shares of Srei Infrastructure Finance declined 2.48 per cent and Mahindra & Mahindra Financial Services 2.37 per cent.

Asserting that the NBFC sector is "overall quite strong", RBI Deputy Governor NS Vishwanathan Friday hinted at additional efforts to ensure they do not have to undergo ALM in the future.

The RBI is looking at strengthening the guidelines to avoid situations of ALM by non-banking lenders, especially infrastructure financing NBFCs dependent on short-term liabilities like commercial papers.