Macquarie has highlighted that credit costs for the second quarter may remain elevated across banks and retail non-banking financial companies (NBFCs), based on its latest channel checks.
The brokerage noted that while stress in the small and medium enterprise (SME) segment is visible, it is limited to certain pockets and not widespread. Despite this, the overall outlook suggests higher credit costs persisting in Q2 for both banks and retail NBFCs.
Macquarie, however, pointed out that HDFC Bank and ICICI Bank are likely to stand out in the current environment, supported by their stronger balance sheets and better risk management practices compared with peers.
Disclaimer: The views and recommendations expressed in this article are those of Macquarie. This publication does not provide investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.
