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Policy▼ Bearish for L&T Finance
Can IRDAI’s insurance reforms impact NBFCs? Jefferies warns L&T Finance, Piramal Finance, others are most exposed
The brief
- Jefferies warned proposed insurance distribution reforms could pressure NBFC fee income
- L&T Finance and Piramal Finance were flagged among the most exposed
- Lower distribution income could weigh on L&T Finance and Piramal Finance
| Stock | Traded | That day | vs Nifty | Volume | Since |
|---|---|---|---|---|---|
| LTF | Fri, 25 Sept | +0.7% | +0.4% | 1.2× | +0.7% · Nifty +0.3% |
| PIRAMALFIN | Fri, 25 Sept | +1.8% | +1.5% | 0.7× | +1.8% · Nifty +0.3% |
✗ Classifier read this as negative; PIRAMALFIN rose 1.5% against the Nifty on the day it traded.
IRDAI's proposed insurance distribution reforms
IRDAI proposed phased cuts to insurers’ expense limits, commission caps and a ban on compulsory insurance bundling with loans. The proposals prompted debate over premiums, mis-selling and distributor payouts, while reports highlighted possible earnings risks for PB Fintech.
Thursday, 24 September
- Can IRDAI’s insurance reforms impact NBFCs? Jefferies warns L&T Finance, Piramal Finance, others are most exposed