RBL Bank, Aditya Birla Capital, SBI Cards Rally up to 5% as RBI Sees Easing Stress in Unsecured Loans

Shares of RBL Bank, Aditya Birla Capital, And SBI Cards and Payments Services Came Under Radar DURING FRIDAYS FRIDAY’s Trading Session, June 6, Gaining Up to 5% AFTER RESERVE BANK OF INDIA Malhotra, in the second bi-monetary policy meeting for the Financial Year 2025-26 (FY26), Noted that the stress previous observed in unsecured loans and credit card portfolios Has’ Aated. However, he cauble that microfinance institutions (MFIS) Continue to face pressure.

“The stress witnessed earlier in retail segments like unsecred personal loans and credit card receives portfolios has abated, with the stress in the stress in the Microfinance segment is person NBFCS Active In these segments are alredy recalibrating their business models, strengthening their credit underwriting practices, and stepping up their collection efforts to avoid avoid avoid avoid avoid axesive bill Risks on this front in the future, “Malhotra said.

The pace of bank retail lending in India declined sharply to 11.6% year-on-yar (yoy) in 2024-25 (fy25) from from 27.6% in fy24, as lenders scled down disbursments of unsecured loans due to Regulatory Concerns, Such as Higher Risk Weights Attached to Unsecured lending, and the impact of a high base effect.

Meanwhile, credit rating agency moody’s recently projected that quality of unsecred retail loans will remain weaker than that of secure loans for at least the next the next few quarters. UNSECURED Personal Loans and Credit Card Borrowing Grew at a Cagr of 22% and 25%, Respectively, in the three years to fy24.

Rbi slashes repo rate for 3rd time in a row

As widely expected, the RBI slashed the repo rate for the third cultural time but surprised the street by announcing a 50-Basis point cut. With a total Reduction of 100 Basis Points Over the Last Three Meetings, The RBI has brought the repo rate -the rate at which it lends to commercial banks – deown to 5.5% from 6.5%.

The Decline in Consumer Pries in Recent months, which has a six-yar low in April, has given the central bank the confidence to proceed with this bumper rate cut. In addition, the rbi has also cut its cash reserve ratio (CRR) by 100 Basis points.

The cut in crr will release up to 2.5 Lakh Crore Liquidity in the system and Reduce the cost of funding for banks, RBI Governor Sanjay Malhotra said in his address.

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