HDFC, Chola Finance to CreditAccess Grameen, Here is what HSBC prefers in diversified financial services sector
HSBC says new business is gradually recovering with fresh disbursals across segments touching 50-70% of pre Covid-19 levels. They say now the key focus is likely to shift on post moratorium collection efficiencies, they expect most players will continue to increase their provisions. Within the NBFC space, HSBCs preferred picks are HDFC Ltd, Chola Finance and CreditAccess Grameen.
Retail loans witnessing a gradual recovery:
As the economy is gradually opening up post the pandemic, HSBC observes a gradual uptick in retail loan demand. Segments such as two-wheelers, passenger cars, and individual home loans continue to witness healthy demand improvement on a MoM basis. Within other auto loan segments, tractors, light commercial vehicles (LCVs) and used vehicles are also witnessing improved demand. Meanwhile, momentum in the heavy commercial vehicles (HCV) and construction equipment (CE) segment remains slow. Demand in the microfinance segment is not as big