Banks vs NBFCs: Which stocks could benefit as RBI set to hike rates for the first time in 3 years?
60-Word AI Digest
The RBI’s expected first rate hike in three years could have a mixed impact on banks and NBFCs. While higher funding costs may pressure NBFC margins, lenders with floating-rate assets and strong liquidity could benefit. Brokerages favour HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and Tata Capital.
Key Takeaways
- The RBI’s expected first rate hike in three years could have a mixed impact on banks and NBFCs.
- While higher funding costs may pressure NBFC margins, lenders with floating-rate assets and strong liquidity could benefit.
- Brokerages favour HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and Tata Capital.
The RBI’s expected first rate hike in three years could have a mixed impact on banks and NBFCs. While higher funding costs may pressure NBFC margins, lenders with floating-rate assets and strong liquidity could benefit. Brokerages favour HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and Tata Capital.
Original Publisher Attribution
This summary was curated from Economic Times.