BFSI Q3 Earnings Preview - Gaining Pace: Axis Securities
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Axis Securities Report
Banks - We expect loan growth to pick up as revival in economic activity and robust festive demand during Q3 FY22 drive retail/small and medium enterprise segments. Deposit traction has marginally moderated QoQ leading to expansion in credit-deposit ratio for most banks.
NBFCs - The disbursements trajectory is expected to improve in Q3 FY22, led by the housing segment. Earnings performance is likely to see further business traction and collection efficiency improvement.
Microfinance - Though collection efficiency has improved month-on-month, it continues to remain below normalised levels.
Small Finance Banks - The disbursement growth momentum has sustained on a sequential basis, translating into healthy AUM growth.
Diversified Financials - While credit card spends will be supported by the festive season, economic unlocking will support the pick-up in new customer addition, which in turn, will aid in cards-in-force growth. We expect healthy earnings performance for most life insurance companies
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