Key Points
We expect systemic loan growth for the banking sector to remain robust in 4QFY23, with a healthy credit growth of 15.7% YoY in Mar23, driven by continued traction in the Retail and SME segments...
Overall, we estimate banking space to deliver ~44% YoY growth in PAT in 4QFY23 and sustain PPoP growth at ~30% YoY...
For NBFCs too, demand remains robust with lending Financials expected to deliver 18%/16% /15% YoY growth in NII/PPoP/PAT in 4QFY23..
Within the segment, we expect disbursements in vehicle financing to have remained healthy in 4QFY23, driven by strong underlying demand and sectoral tailwinds...
CIFC is a franchise equipped to deliver strong AUM growth with benign credit costs (relative to peers), translating into a sustainable RoE of ~20% across economic cycles...
