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⢠The Reserve Bank of India has increased the risk weights for loans to NBFCs, with higher-rated NBFCs facing a steeper increase.
⢠Banks may have to raise interest rates or slow lending to these segments to conserve capital, which could impact earnings.
⢠However, credit flow to the sector is expected to continue, with banks negotiating on a case-by-case basis for pricing of loans to top-rated NBFCs.