Financial Stocks Jump After RBI Eases Lending Rules

The central bank on Tuesday trimmed the higher capital requirements introduced in November

- Reuters

Shares of most Indian financial companies, especially those of non-bank and microfinance-focused lenders, jumped on Thursday after the central bank further eased its capital requirements for micro loans and bank credit.

Financial stocks, which include non-bank finance companies (NBFCs), jumped about 1%, outpacing the 0.7% increase in banking stocks. The National Stock Exchange's benchmark Nifty 50, in comparison, was flat.

The Reserve Bank of India (RBI) on Tuesday trimmed the higher capital requirements introduced in November, the latest in a series of growth-supportive measures since Sanjay Malhotra took over as governor of the central bank in December.