Non-Banking Financial Companies (NBFCs) surged sharply on June 6 after the Reserve Bank of India (RBI) delivered a surprise 50 basis point repo rate cut, bringing the benchmark rate down to 5.50%. The unexpected move by the Monetary Policy Committee (MPC), which voted 5-1 in favour of the cut, lifted sentiment across rate-sensitive NBFC counters.
CreditAccess Grameen led the pack with a 5.21% gain, followed by Indostar Capital Finance, which jumped 4.54%. Bajaj Finance rose 3.53%, Mahindra & Mahindra Financial Services climbed 3.37%, and SBI Cards and Payment Services was up 3.12%. Other notable gainers included Cholamandalam Investment & Finance (2.54%), Muthoot Capital Services (4.39%), and Aditya Birla Capital (1.58%).
The broader NBFC index also received a boost, with investors betting on improved borrowing costs and stronger credit demand following the rate cut. Liquidity is expected to improve further with the RBI’s additional decision to cut the Cash Reserve Ratio (CRR) by 100 basis points—from 4% to 3%—in four tranches beginning September 2025.
The central bank also shifted its policy stance from “accommodative” to “neutral” and revised the CPI inflation forecast for FY26 to 3.7%, down from the earlier projection of 4%. This reflects the RBI’s confidence in easing price pressures amid favorable monsoon expectations, strong Rabi output, and stable global commodity trends.
As NBFCs are highly sensitive to interest rate movements and systemic liquidity, today’s measures are expected to provide much-needed tailwinds to growth in the coming quarters.
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