MUMBAI: Non-Banking Finance companies are expected to report as much as 35 percent growth in earnings as retail loans by small and medium enterprises continued at a brisk pace even as state-run lenders continued to hold on to their purse strings due to bad loans.
Housing finance companies will maintain momentum with the growth coming from the affordable segment.
A good monsoon, lower income reversal and lower credit cost due to stable asset quality will help vehicle financing report strong traction particularly tractor and commercial.
Consumer finance companies will maintain growth momentum due to pick up in sales in festive season. Microfinance institutions are expected to report softer earnings due to increased provisioning. "Two consecutive years of good monsoon have lifted rural sentiment," said Jefferies in an earnings preview report. Jefferies forecasts 15 per cent loan growth at Shriram Transport Finance and Mahindra and Mahindra Financial Services in the second quarter.
Housing finance companies will maintain momentum with the growth coming from the affordable segment.
A good monsoon, lower income reversal and lower credit cost due to stable asset quality will help vehicle financing report strong traction particularly tractor and commercial.
Consumer finance companies will maintain growth momentum due to pick up in sales in festive season. Microfinance institutions are expected to report softer earnings due to increased provisioning. "Two consecutive years of good monsoon have lifted rural sentiment," said Jefferies in an earnings preview report. Jefferies forecasts 15 per cent loan growth at Shriram Transport Finance and Mahindra and Mahindra Financial Services in the second quarter.
Our checks suggest home loan disbursal has improved, though growth has varied across regions," said Jefferies in the report. "There has been some pick up in disbursal of affordable housing segment. Stabilisation of regional issues should aid better loan growth at Repco."
HDFC's disbursement growth is likely to be strong benefitting from various government initiatives on affordable housing.
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