Financial services sector stocks: Don’t paint all of them with RBI’s brush: 7 stocks in the financial services sector with upside potential of up to 51%

Synopsis

Once again the RBI has issued warnings to banks and NBFCs to mend their ways. It is not the first time this has happened, nor will it be the last. The RBI is doing its job, which is to ensure that credit growth is orderly and does not lead to a crisis as everyone goes overboard to lend. This is not to say that there are no bad apples in the financial services sector. But painting all companies with the same brush achieves little. It would be wrong to compare an NBFC which is focused on rural lending for the last two decades with one that is into unsecured lending in urban areas. While both are NBFCs, their operating matrices are different. And just because the second is under the lens, should the first also be punished?

One of the biggest wealth creators on the market has not given any returns in the last one year. And a stock that was not on anyone’s radar till a few years ago, has delivered positive returns. Yes, even after taking into account the recent correction.There are many reasons for this divergence in the performance. They range from the RBI’s tightening of regulations to strengthen the financial services sector, to the weakness of individual

ETMarkets.com

Dec 27, 2024, 01:39:00 PM IST

Gift A Story

Share member-only stories with your friends or family and help them read it for free.

Gifting Limit Reached!

Hey , no more stories left for you to gift.

No worries! You will get a limit of 15 stories next month to share with your friends and family.

Gift This Story

Stories Left!

You can gift upto 15 stories in a month.

• FONT SIZE

  AbcSmall

  AbcMedium

  AbcLarge

• SAVE
• PRINT
• COMMENT

Continue reading with one of these options:

Limited Access

Free

Login to get access to some exclusive stories
& personalised newsletters

Login Now

Unlimited Access

Starting @ Rs120/month

Get access to exclusive stories, expert opinions &
in-depth stock reports

Subscribe Now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Sign In to Read for Free

Prime Account Detected!

It seems like you’re already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Sign in & Access ET Prime

To read full story, subscribe to ET Prime

Get Unlimited Access to The Economic Times

₹34 per week

Billed annually at
₹2499 ₹1749

Continue

Already a Member? Sign In now

Already a Member? Sign In now

Unlock this story and enjoy all members-only benefits.

Subscribe Now

Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

90 Days Prime access worth Rs999 unlocked for you

Claim Now

Already a Member? Sign In now

Why ?

• 

  Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

• 

  Stock analysis. Market Research. Industry Trends on 4000+ Stocks

• 

  Clean experience with
  Minimal Ads

• 

  Comment & Engage with ET Prime community

• 

  Exclusive invites to Virtual Events with Industry Leaders

• 

  A trusted team of Journalists & Analysts who can best filter signal from noise
  

• 

  ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​