Shares of PB Fintech Ltd. declined nearly 3% on Wednesday, December 17, as brokerage firm Citi said the street remains concerned about the firm’s yields.Citi maintained its “buy” rating on the stock in its note with a price target of ₹2,225 per share, implying a potential upside of 22.2% from its previous close of ₹1,820.5 apiece.
Citi said recent concerns stem from prospects in the Insurance Amendment Bill, where the regulator will be vested with the authority to set limits on commissions, remunerations or rewards and the manner of payments, payable to the insurance agents or intermediaries.
The Lok Sabha on Tuesday, December 16, passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bills, 2025, with the Centre stating that allowing up to 100% foreign direct investment (FDI) in insurance could improve competition, capital availability and affordability for policyholders.
The Street is likely factoring a scenario of rebound of the current expenses of management (EOM) regulations to the previous regime — per product per distributor commission capping and/or reduction in commission pool for the industry in case of a commission ceiling within the EOM, Citi said. The present EOM includes expenses as well.Citi’s note said that it sees low possibility of the regulator back-tracking on the current framework of democratised commission structure as it disincentivises distributors with high growth or superior operational capability. Also, it is against the regulator’s objective of driving penetration while controlling business quality, Citi added.Of the 23 analysts that have coverage on the stock, 12 have a “buy” rating, four have a “hold” rating and seven have a “sell” rating.Shares of PB Fintech are trading 2.9% lower at ₹1,767. The stock is down over 21% from its 52-week high of ₹2,246. Shares are down 17% so far in 2025.Also Read: Sammaan Capital stock slips as Delhi Police files fresh FIR; SC asks CBI to take call
