Banks, NBFCs may see some rally after Rs 6 trn relief package by FM

Investors may pause to see the entire scheme of funding, and impact on bonds

The finance minister (FM) has not disappointed businesses this time. That is largely the verdict from market experts and analysts who have given a thumbs up to the Rs 6-trillion relief package announced on Wednesday.
 

With nearly Rs 3.7 trillion targeted at micro, small and medium enterprises (MSMEs), this addresses the growing discomfort banks felt while lending to the sector. Not only has credit growth in this segment been weak, asset quality of these loans, too, has prompted banks to take a cautious stance on the sector.

While Wednesday’s 4 per cent gains in Nifty Bank index was in anticipation