Export surge can be game changer, see demand in textiles, petroleum: HSBC Global AMC

If investment by large companies comes back, it will aid loan growth in banking, said Tushar Pradhan, CIO of HSBC Global AMC. Pradhan also expects good demand from textiles and petroleum products.

Speaking in an interview with CNBC-TV18, he said, “There is a lot of liquidity now with the banks. We haven’t seen a significant credit offtake for quite some time. However, most of the credit has gone to the more personal type of loans or smaller loans, but not large companies because of lack of investment -- there is no investment drive as such and if that happens then we should see strong asset growth come back to the banks after a very difficult period and that looks attractive.”

“The export surge has been a bit of a surprise. We do not really know which sectors are going to contribute to this growth and what are we going to export out of India, which is going to substantially change the picture, going forward. However, we have seen interesting demand come from textiles, we are seeing a lot of petroleum products going out, but the picture is uncertain; these are very early days in terms of establishing which companies will continue to export with that kind of momentum,” Pradhan said.