Banks are losing share and it is gain for NBFCs.
public sector banks mostly managed by politicians are crumbling after RBI’s crackdown on NPA mess.
Even borrowers are not interested to go to banks these days.
My own case study. I tried to get loan from SBI three times. failed. Every time they reject my application I learned some thing about financials. finally I approached NBFC and got loan within one week. This is despite having CIBIL score above 900. imagine if CIBIL score is below 800. on enquiry with RM at the bank why it got rejected, he said you should have begged at them (seniors whom I met ). seems they treat customers as beggars.
But banks will give loans to Mallya’s without any collateral because he is capable of giving free luxury trips.
same thing with Insurance companies run by Govt. dont fall prey to thosé IPOs which may hit market any time soon.
I am not an expert in all this I am just sharing my view.
Housing Finance market is growing and will continue to grow so Housing Finance Companies should be benefited but competition is increasing and due to increase in liquidity banks are offering better products most of the market share lost by PSU’s is being captured by fast growing private sector banks like HDFC, YES , Indusind. Growth in consumer finance companies like Bajaj FInance and there business model is questionable and they are overvalued as per normal valuation models. So I think Private sector banks will grow faster than NBFC’s. Some of the NBFC’s are small in size so they have a greater potential of growth in stock prices so based on returns these small NBFC’s may outperform the whole market.
Some of the NBFC’s like M&MFin are going up without any reason I don’t know what business M&MFin does.