Positive on NBFCs as compared to PSU banks: David Pezarkar

In a chat with ET Now, David Pezarkar, CIO-Equities, BOI AXA Investment Managers Pvt Ltd shares his views on NBFCs and CV finance companies.

ET Now: Are you investing in NBFC stocks? What are you buying in NBFC? Are you buying CV finance companies or consumer finance companies or microfinance companies?

David Pezarkar: We have exposure to CV finance. We feel this segment will benefit the most because of the expected cyclical recovery. We have also selectively increased exposure to NBFCs, which are exposed to the insurance sector as well.

This is one sector which has largely been ignored and investors are more likely to turn their attention to all these NBFCs. They have been suffering on various counts because of regulatory interference which caused a change in their business model, but which is now stabilised and should start seeing a fast pickup as well as other NBFCs which are more geared to an economic recovery.

We are positive on NBFCs as compared to PSU banks. We have exposure and selectively increased it as well.