Archive · 4 Oct 2025
ICICI Prudential: Banks Gain Edge Over NBFCs
Imagine banks and NBFCs are businesses that give out loans.
New rules from the RBI help banks compete better.
An expert at ICICI Prudential says banks can now do things only NBFCs did before, potentially making them more money.
Sectors like factories and cars are expected to do well first.
Also, houses are important for the economy, and incentives could boost the housing market.
The expert is careful about some investments but likes companies in areas like factories.
Banks are in a good position to take advantage of changes.
RBI measures reshape competition between banks and NBFCs.
Banks are positioned to raise deposits and enter NBFC-dominated segments.
Industrials, capital goods, banks, and autos are likely to benefit first.
Housing sector recovery is central to India's economic growth.
Supportive monetary policy and fiscal measures position cyclical sectors for recovery.
- Who
- Anish Tawakley, Co-CIO Equity at ICICI Prudential AMC
- What
- Discussed the impact of RBI measures on banks and NBFCs.
- When
- N/A
- Where
- India
- Why
- Due to RBI's recent measures and shifts in the competitive landscape.
NBFCs
Banks
Competitive Advantage
NBFCs
Facing increased competition from banks due to RBI measures.
Banks
Gaining advantage from RBI measures.
- Banks' Advantage
- RBI measures strengthen banks, letting them compete with NBFCs.
- Key Sectors
- Industrials, capital goods, banks, and autos expected to benefit first.
- Housing Sector
- Critical for India's economic growth; expected to recover.
- Fiscal Measures
- Pro-spending measures from the budget and GST 2.0.
- Portfolio Strategy
- Cautious on overvalued sectors; favors cyclicals.
