With the Reserve Bank of India ( RBI ) announcing an enhanced limit on loan against shares to Rs 1 crore from Rs 20 lakh, banks are expected to become more aggressive in this segment, said both bankers and analysts. Currently, non-banking financial companies and brokerages are more open to lending to retail customers against their equity holdings.

The year-on-year growth in bank credit to individuals against shares and bonds was at a 19-month low in August, according to the RBI data. Loans to shares and bonds grew merely 0.9% on year to Rs 9,807 crore in August compared to 26.8% in the year-ago period. However, experts believe that growth will pick up going ahead followed by the RBI’s announcements.

“This opens up new business opportunities, especially among high networth individuals (

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