Analysts bet on consumer financiers as festive cheer perks up loan demand

Demand for consumer goods, automobiles, white goods has been holding momentum, which should translate into good credit off take for consumer financiers this festive season, analysts said

With the festival season around the corner, analysts see consumer-financing companies doing extremely well in the next few months. This, they say, will be driven by strong credit growth on the back of massive pent-up demand.

Siddharth Purohit, principal officer and fund manager at InvesQ Investment Advisors, is upbeat on the sector for three key reasons.

“One, this will be the first time in two years that we will see the festival season without any Covid-related restrictions. We expect strong demand. Two, a lot of the balance-sheet clean-up has already happened, and we haven’t seen any serious asset quality threat