Satin Creditcare Network shares rallied 20 percent intraday Tuesday after the company said farm loan waiver announced by Maharashtra and Uttar Pradesh governments will not have any negative impact.
Not only banks but non-banking finance companies were also under pressure as investors worried about these companies' financials after farm loan waiver of more than Rs 66,000 crore by both states.
Nomura in its latest report said Punjab is also about to finalise its debt waiver package, and there are demands in MP/Tamil Nadu to extend the debt waiver applicable to co-operative bank debt, even to the debt of commercial banks.
In an interview to CNBC-TV18, HP Singh, Founder & MD of Satin Creditcare Network said credit culture to an extent does get hurt in this process when government announces farm loan waiver but the company will not have negative impact from this.
He further said it gives out loans only to other agri credit segments, and not for farm loans. Default ratio will reduce going forward, he feels.
Credit demand has spurred post demonetisation, he said.
At 15:09 hours IST, the stock price was quoting at Rs 295.80, up Rs 42.70, or 16.87 percent amid high volumes on the BSE.
Posted by Sunil Shankar Matkar
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
