A research report by Avendus Securities stated that power finance and housing finance companies are likely to have better time going ahead while finance companies engaged in the retail sector may see moderation in demand growth.
After nearly two quarters of higher slippages and restructuring, asset quality remained stable during June quarter. Easing concerns on the high losses of ailing state electricity boards (SEBs) and likely government policy action may aid the sentiment for power financials, the report said adding that valuations of these companies remain attractive. Referring to growth in finance companies that lend to retail segment like loans for autos and consumer durables, it said the growth rate may moderate in future.
Contact: Avendus
Tel: +91-22-6648 0050
Web: www.avendus.com
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