Banks are slowly going to extend loans against shares and bonds, because the markets remain volatile in the midst of increased trade tensions between India and the US, experts say.
According to data collected by lineThe loans from banks against shares and bonds rose by 2-6 percent on an annual basis (yo-juli 2025 on annual basis. Between January-April, banks against shares with 17-33 percent Yoy, reserve Bank of India (RBI) data. In July, banks against shares rose by 3 percent to £ 9,730 crore, highly lower than 25 percent growth in the same period last year.
“There has been a lot of uncertainty in the last three months, so markets are reached and volatile. Normally, investors also tend to reduce their leverage during such periods and institutions are carefully in loans to investors during the volatile phase. During the work of the Equafe investigation into the Equafe study.
According to NSE data, Nifty 50 has risen somewhat from 24346.70 to 24768.35 points in May-Juli. In January April period, the Nifty 50 index rose from 23742.90 points to 24334.20 points.
Anil Gupta, senior VP and co-group head in ICRA, says that, since banks can only borrow up to £ 20 lakh against shares, their loans are not useful in the total loan against effects, which is expected to be more than £ 50,000 crore if NBFCs dominate in this segment because there is no bolding cap.
“It is difficult to explain the slower growth or de-growth in this segment for banks, because it is not a useful segment or a focus segment for them, but a weak market trends or lower tenders of borrowers for leverage in weak markets can be a few factors,” he said.
A banker of the private sector said that the uncertainties of global trade have led to banks that hesitate to borrow against shares and can breathe new life into as soon as the trade tensions cooled down and more IPOs come on the market.
Published on September 7, 2025
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