Shadow banks likely to see high disbursements and recoveries this earning season
Non-Banking Financial Companies (NBFCs) are expected to report a strong Q4FY23 results, driven by high disbursements and recoveries, despite the potential impact of rising interest rates on their net interest margins.
Non-Banking Financial Companies (NBFCs) are expected to report a strong Q4FY23 results, driven by high disbursements and recoveries, despite the potential impact of rising interest rates on their net interest margins.
There is a strong underlying consumption demand seen across segments of housing, vehicles, and consumer durables, which is likely to support the disbursal strength for NBFCs.
Housing Finance Companies (HFCs) are expected to report growth in the low to high teens, with stable net interest margins (NIMs), and HDFC Limited and Can Fin Homes are expected to report good numbers.
Commercial vehicle (CV) finance is expected to report growth in the mid-teens to over 25 percent due to strong disbursements.
Gold finance is expected to pick up growth quarter on quarter, with Muthoot Finance expected to report positive sequential growth, while Manappuram Finance is likely to report negative growth on a sequential basis.
Consumer finance is expected to report better growth due to improved macros seen in Q4, with no asset quality woes expected, but there may be some pressure on NIMs.
While speaking to CNBC-TV18 about earnings expectations, Nischint Chawathe, Senior Analyst at Kotak Institutional Equities said that the firm is positive on Muthoot Finance in the gold loan segment.
He said, “We have a coverage on Muthoot and we have liked this name. Gold prices being what they are, and the kind of appreciation seen over the last two months, one is saying that this quarter should be good in terms of loan growth as well as margins. So that is something which works for this quarter.”
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