Stalk to buy: Shares of Bandhan Bank saw a tremendous rise after the Reserve Bank of India (RBI) relaxed norms on microfinance lending. Shares of Bandhan Bank jumped over 7% in early trade on Tuesday. After this RBI relief, brokerage firm Jefferies believes that this is positive news for NBFC-MFIs and it will affect firms like Bandhan Bank and this will give rise to stocks.
What is RBI’s new rule?
RBI has relaxed its norms for small loans and raised the maximum limit for NBFC-MFIs to 25 per cent. With this said that it should not be too much. A micro finance loan refers to a guarantee-free loan given to a family with an annual income of up to Rs 3 lakh.
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What did the brokerage house say?
Global brokerage has said in one of its notes that this relaxation of RBI will benefit Bandhan Bank. Jefferies has a Buy Advice on Bandhan Bank and has a target price of ₹380. Let us inform that the shares of Bandhan Bank are currently trading at Rs 284.95 with a gain of 7.55 per cent on the NSE.