Nuvama Wealth Management Limited has informed stock exchanges about regulatory orders received regarding GST matters from tax authorities in Delhi and Mumbai. The disclosures were made under Regulation 30 of SEBI Listing Regulations.

Delhi GST Demand Order

Nuvama Wealth and Investment Limited (NWIL), a wholly owned material subsidiary of the company, received a demand order from the Assistant Commissioner of State Tax, Delhi. The order was issued under Section 73 of the DGST Act, 2017.

The demand order covers the period from April 2021 to March 2022 and addresses several GST compliance issues including excess Input Tax Credit (ITC) claimed in GSTR-3B compared to that available in GSTR-2A, mismatch between GSTR-1 and GSTR-9 returns, and other ITC-related compliance issues. NWIL plans to file the necessary appeal with the Appellate Authority to contest the demand.

Mumbai GST Case Resolution

Separately, the company received an order from the Deputy Commissioner of State Tax, Mumbai under Section 73 of MGST Act, 2017. This case has been resolved through payment of dues.

The Mumbai case also related to the period April 2021 to March 2022 for excess claim of ITC in GSTR-3B vis-à-vis ITC available in GSTR-2A and interest for delay in payment of tax under reverse charge mechanism. Following the payment, the proceedings have been dropped with no further action required.

Company Impact Statement

Nuvama Wealth Management has clarified that no impact is expected on the financials, operations, or other activities of the company or its subsidiaries and associates pursuant to these orders. The company has requested the stock exchanges to take both disclosures on record as part of its regulatory obligations under the SEBI Listing Regulations.

Motilal Oswal Financial Services has identified a significant shift in India's banking landscape, where public sector banks are aggressively reclaiming market share in MSME and home loans from private lenders. Despite this competitive pressure, the brokerage maintains that HDFC Bank, ICICI Bank, State Bank of India and AU Bank remain the most critical investment picks as the credit cycle transitions into a more disciplined, execution-focused phase.

PSU Banks Dominate MSME Lending

Public sector banks have emerged as the dominant force in MSME lending over the past six to nine months, fundamentally altering competitive dynamics. Channel checks across direct loan selling agents reveal PSU banks are now sanctioning MSME and working-capital loans with remarkable speed.

PSU banks are leveraging CGTMSE-backed structures for loans up to ₹50.00 crores without collateral requirements, while repo-linked pricing has significantly narrowed rate differentials versus private banks. This central government push to scale MSME credit has accelerated PSU bank execution capabilities.

Private Banks Adapt Strategy

Private banks are recalibrating their approach, with most now favouring hybrid MSME structures that combine partial CGTMSE cover with collateral to limit unsecured exposure. Among private lenders, ICICI Bank and HDFC Bank remain most competitive, supported by low funding costs and superior underwriting capabilities.

Housing Sector Resilience

The housing and real estate segment maintains momentum with improved disbursement rates and strong activity among large developers. PSU banks are regaining relevance in home loans through lower rates, faster processing, and normalised DSA commissions of 0.80-1.20%. This strategy is particularly effective in Tier-2 and Tier-3 cities, while private banks continue dominating premium borrower segments.

Credit Cards and Personal Loans Stabilise

Credit card growth remains subdued with selective issuances, though early stress indicators are stabilising despite elevated delinquency levels compared to historical norms. Personal loans show early stabilisation signs with completed pricing corrections and improved affordability, though lenders avoid aggressive volume chasing.

Investment Outlook

Motilal Oswal expects the credit cycle to settle into a sustainable, execution-led phase with systemic loan growth likely maintaining around 12.00% year-on-year in FY26. The brokerage favours lenders with strong execution capabilities, stable asset quality, and diversified growth drivers, specifically recommending ICICI Bank and HDFC Bank for growth compounding abilities, State Bank of India for steady execution and scale, and AU Bank for robust growth prospects.