look news india
Mumbai: The recent action taken by the Reserve Bank against some listed banks, non-banking financial companies (NBFCs) and fintechs is expected to result in foreign institutional investors (FIIs) reducing their stake in the financial sector, which is likely to have an impact. Financial sector performance.
According to the data received, in the first four months of the current year, foreign investors have sold shares worth a total of Rs 46,000 crore in the financial sector.
Foreign investors have been net sellers of financial sector stocks in three of the first four months of 2024. After selling shares worth Rs 30,000 crore in January, FIIA had offloaded shares worth Rs 10,000 crore in February and Rs 9,300 crore in April. However, they made net purchases in the sector in March.
In recent times, the Reserve Bank has taken regulatory action against Kotak Mahindra Bank, Bank of Baroda, Federal Bank and IIFL, NBFCs like Bajaj Finance and fintechs like Paytm.
Investors appear to be bearish on the stock due to concerns that the financial condition of companies in the sector will deteriorate as a result of regulatory measures. There is also a threat to the credit growth of banks.
An analyst said the pressure to improve compliance measures and administrative processes will put additional cost pressure on financial sector companies.