Cooperative banks, select NBFCs jump as RBI eases lending limits

RBI’s new lending guidelines for cooperative banks lifted sentiment across the NBFC and small finance space. The move, which eases lending caps and broadens credit exposure limits, triggered buying in Saraswat Co-operative Bank, Manappuram Finance, and other mid-tier lenders. Analysts said the reforms improve liquidity access and credit growth potential, aligning with RBI’s push to strengthen regional banking ecosystems and expand financial inclusion across tier-2 and rural markets.