NBFCs curb fresh loans in rural markets as weak monsoon raises repayment risks
Shriram Finance moved higher.
· ET Stocks, Economic Times Markets
India's leading non-bank lenders like Shriram Finance and Bajaj Finance are limiting new lending in drought-affected regions. The lenders are closely monitoring borrowers for early signs of repayment difficulties due to weak monsoon rainfall. Companies are adjusting loan growth expectations downward and strengthening collection efforts in impacted locations.
The analysis
Against that, the stock is -4.0% on the day at ₹865.00, and has returned -17.9% over three months. It sits 24% below its 52-week high. The financial services sector has moved -13.2% over the same period, so Shriram Finance is running 4.7 points behind its peers.
This is a Monsoon / rural demand event. Rural demand is a large share of staples and two-wheeler volumes, and it tracks the monsoon and support prices with a lag of a quarter or two. On the day the stock is -4.0%, so the market took notice.
For Shriram Finance, the question is how much of this is already reflected in the price and how much re-rates the financial services peer set alongside it.
Market context
- In focus: Shriram Finance (SHRIRAMFIN), in Financial Services.
- On the day, 0 of 2 are higher: Bajaj Finance leads at -1.4% and Shriram Finance trails at -4.0%.
- Over three months: Shriram Finance -17.9% against Financial Services -13.2% (4.7 points behind); Bajaj Finance -9.3% against Financial Services -13.2% (3.9 points ahead).
- Trading well above normal today: Shriram Finance at 2.2 times its 20-day average volume.
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| Shriram FinanceSHRIRAMFIN · Financial Services | ₹865.00 | -4.0% | -17.0% | -17.9% | -24.2% | 2.2× | — |
| Bajaj FinanceBAJFINANCE · Financial Services | ₹928.95 | -1.4% | -7.8% | -9.3% | -19.8% | 0.5× | — |
Financial Services
1M -11.5% · 3M -13.2%
Shriram Finance, Bajaj Finance
Prices as of 27 Oct 2026, 05:52 IST. Sector moves are the average of the stocks we track in each sector.
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