Gaurav Kochar on what to expect from NBFC stocks going ahead
«So, this has been a trend for the last couple of quarters and it has continued even in the second quarter. The second aspect was the PSB, the public sector banks, continuing to see a very good credit growth even in this quarter,» says Gaurav Kochar, Mirae Asset Investment Managers.
Dissect for us what is it that you have made of the three things that really stand out from amidst the Q2 updates of banks so far?
Gaurav Kochar: So, some of the banks have reported their pre-quarterly release for the second quarter of FY25. So, based on this the trends have been mixed. If I were to give three key takeaways from that, one would definitely be that the loan growth has been quite mixed. Banks with higher credit deposit ratio, they have seen some moderation in loan growth and they have seen some acceleration in deposit growth whereas banks that were sitting on comfortable CD ratios are seeing better credit growth than deposit growth.
So, this has been a trend for the last couple of quarters and it has continued even in the second quarter. The second aspect was the PSB, the public sector banks, continuing to see a very good credit growth even in this quarter.
So, most of the PSBs that have reported numbers have seen double digit credit growth, which is quite good and the third key takeaway has been on asset quality. Some of the unsecured banks with higher share of unsecured have seen both moderation in credit growth as well as some challenges in collection, be it in the MFI space, cards or personal loans, so that seems to
