Shares of Indian lenders tumbled on Friday on fears that loan growth and profits could take a hit, a day after the central bank tightened rules for personal loans and credit cards to curb sharp growth in the riskier lending products.
The Nifty Bank index and the Nifty Financial Services Index fell 1% each, with top non-banking financial company Bajaj Finance sliding 3% and SBI Card down 5.4%.
Strong loan growth, led by retail lending on the back of robust consumption, has boosted profits at Indian lenders this year. Better asset quality has also helped state-run lenders outpace the blue-chip indexes . (Reporting by Chris Thomas in Bengaluru; Editing by Janane Venkatraman)