{"id":8105,"date":"2025-09-07T15:08:06","date_gmt":"2025-09-07T15:08:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/8105\/"},"modified":"2025-09-07T15:08:06","modified_gmt":"2025-09-07T15:08:06","slug":"banks-go-slow-on-lending-against-shares-as-trade-tensions-make-markets-volatile","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/8105\/","title":{"rendered":"Banks go slow on lending against shares as trade tensions make markets volatile"},"content":{"rendered":"<p>Banks are going slow in extending loans against shares and bonds as markets remain volatile amid heightened trade tensions between India and the US, experts say.<\/p>\n<p>According to data compiled by <a href=\"https:\/\/www.thehindubusinessline.com\/\" target=\"_blank\" rel=\"nofollow noopener\">businessline<\/a>, banks\u2019 loans against shares and bonds rose by 2-6 per cent year-on-year (y-o-y) between May-July 2025. Between January-April, banks\u2019 loans against shares  increased  by 17-33 per cent y-o-y, <a href=\"https:\/\/www.thehindubusinessline.com\/topic\/rbi-and-other-central-banks\/\" target=\"_blank\" rel=\"nofollow noopener\">Reserve Bank of India (RBI)<\/a> data showed. In July, banks\u2019 loan against shares were up 3 per cent to  \u20b99,730 crore, sharply lower than 25 per cent growth seen in same period last year.<\/p>\n<p>\u201cThere has been a lot of global uncertainty over the past  three months period and thus markets have been range bound and volatile. Normally, investors also tend to reduce their leverage during such periods and institutions also become cautious in lending to investors during volatile phase. Adverse volatility that  leads to downside momentum can increase the lending risk for institutions,\u201d said Kranthi Bhathini, director of equity research at WealthMills Securities. <\/p>\n<p>According to <a href=\"https:\/\/www.thehindubusinessline.com\/topic\/nse\/\" target=\"_blank\" rel=\"nofollow noopener\">NSE<\/a> data, Nifty 50 has moved up slightly from 24346.70 to 24768.35 points in May-July period. In January-April period, the Nifty 50 index moved up from 23742.90 points to 24334.20 points.  <\/p>\n<p> Anil Gupta, senior VP and co-group head at ICRA, says since banks can lend only up to  \u20b920 lakh against shares, their lending is not meaningful in overall loan against securities, which is expected to be over  \u20b950,000 crore as<a href=\"https:\/\/www.thehindubusinessline.com\/topic\/nbfc\/\" target=\"_blank\" rel=\"nofollow noopener\"> NBFC<\/a>s dominate in this segment as there is no lending cap for them and is based on regulatory limit for single borrower based on 15 per cent of tier-1 capital. <\/p>\n<p>\u201cIt is difficult to explain the slower growth or de-growth in this segment for banks as it is not a meaningful segment or a focus segment for them, but weak market returns or lower tendency of borrowers to leverage in weak markets may be some factors,\u201d he said. <\/p>\n<p>A private sector banker said global trade uncertainties have led to banks being hesitant in lending against shares and the sentiment may revive once trade tensions cool off and more IPOs hit the market. <\/p>\n<p class=\"publish-time\" id=\"end-of-article\">Published on  September 7, 2025 <\/p>\n","protected":false},"excerpt":{"rendered":"Banks are going slow in extending loans against shares and bonds as markets remain volatile amid heightened trade&hellip;\n","protected":false},"author":2,"featured_media":8106,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[1396,910,138,10527,220,111,139,69,584],"class_list":{"0":"post-8105","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-banks","9":"tag-bonds","10":"tag-business","11":"tag-loans","12":"tag-markets","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz","16":"tag-trade"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/8105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=8105"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/8105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/8106"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=8105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=8105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=8105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}