Shares of non-banking finance companies surged up to 16 per cent Wednesday after SBI decided to buy their assets to the tune of Rs 45,000 crore.
The scrip of Dewan Housing climbed 16.08 per cent, Shriram Transport Finance 13.18 per cent, Edelweiss Financial Services 9.99 per cent, Bajaj Finance 9.91 per cent, Mahindra & Mahindra Financial Services 9.79 per cent and Bajaj Finserv 9.76 per cent on BSE.
Coming to the rescue of cash-strapped NBFCs, State Bank of India Tuesday decided to buy their assets to the tune of Rs 45,000 crore, a move that will provide liquidity support to non-banking financing companies facing headwinds after a series of loan defaults by IL&FS group firms.
NBFCs along with mutual funds have been facing a liquidity crunch following a series of loan repayment default since late September by IL&FS and its group companies.
Stocks of NBFCs have wilted due to heavy selling pressure following the IL&FS defaults since late September.
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