NBFC stocks crash after RBI mulls stricter norms; DHFL slips 18.5%

Analysts expect growth, margins to come under pressure

The correction in non-banking financial companies (NBFCs) extended on Monday as investors dumped shares fearing that the proposed norms by the Reserve Bank of India (RBI) would impact growth and profitability. The central bank on Friday said it was looking to strengthen norms for NBFCs to avoid rollover risks. It also urged financial firms to reduce their dependence on short-term funding, and instead make use of long-term funding.

Shares of Dewan Housing Finance Corporation (DHFL) tumbled 18.5 per cent, extending its year-to-date (YTD) fall to 61.7 per cent. Edelweiss Financial Services tumbled 13.7 per cent, taking its YTD fall