NBFCs seeing good Q2 numbers on fall in input cost: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, talks about the recent set of quarterly numbers by non-banking financial companies ( NBFCs).

ET Now: What do you make out of the NBFC earnings that we saw on Tuesday? What particularly stood out for Bajaj Finance?

Deepak Shenoy: Bajaj Finance results were pretty good. We have not analysed them in detail, but on the fact of it, I guess Bajaj Finserv has been responsible for some of their moves.
One of the advantages NBFCs have over banks is that they can actually offer consumer durables loans at zero per cent interest rate, whereas banks can no longer offer this because typically it is built into the price of the product.
So, a company like Bajaj Finance should continue to benefit in my opinion, at least Bajaj Finserv business will continue to benefit on consumer durables loan front.
We have seen fairly stable results from Dewan Housing Finance. I have not seen SKS Microfinance's loan book as yet, but this is probably a good quarter for the non-banking finance businesses, given their input costs have come down substantially over last year.