BFSI Q2 Earnings Preview - Signs Of Pick-Up: Axis Securities
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Axis Securities Report
While the overall credit growth remains in the range of 6-7%, we believe business momentum has improved since the beginning of Q2 FY22. Retail and small and medium enterprise are witnessing gradual pick-up, indicated by the provisional numbers reported to date by most banks.
Since Q1 FY22 was impacted by Covid 2.0, we expect Q2 FY22 to be better in terms of disbursements for most non banking financial companies. Collection efficiencies for housing financing companies (skewed towards salaried) is comparatively better.
Small finance banks are expected to regain momentum on disbursements, aiding assets under management growth.
In Insurance, new business premium growth is expected to be healthy, led by unit linked insurance plans, non-participating, and credit life products.
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