Jefferies hosted six major Indian financial players at its Asia Forum, offering investors valuable insights into current business dynamics and outlooks. According to the brokerage, HDFC Bank presented a confident outlook, highlighting steady momentum in deposit growth and improving loan growth trends. The bank also reaffirmed its strong asset quality profile, offering reassurance to investors amidst rising concerns on retail stress in the sector.
IDFC First Bank, however, acknowledged near-term headwinds, especially in the microfinance segment, but noted that other lending verticals continue to perform well. On the insurance front, both HDFC Life and ICICI Prudential Life are currently awaiting clarity on upcoming distribution rule changes, but the managements expressed optimism about mitigating any adverse impacts.
Paytm, meanwhile, struck a positive tone on its merchant business and noted a marginal improvement in the outlook for retail lending. BSE is currently assessing the potential impact of open interest (OI) limits recently announced by the regulator. However, the exchange clarified that it does not plan to alter the expiry dates for futures and options contracts for now. Overall, Jefferies believes Indian financials remain on a firm footing despite evolving regulatory and macroeconomic dynamics.
