What is a credit boom and why does it matter for investors?

A credit boom refers to a period of significant growth in lending activity within an economy. In India's case, we're seeing loan growth of 10.3% and deposit growth of 10.4%. This matters for investors because when credit flows freely, businesses can expand operations, consumers can increase spending, and the overall economy tends to grow faster. Banks earn more through interest income, while companies that depend on borrowing can fund new projects. This creates investment opportunities across various sectors, from financial institutions to infrastructure and industrial companies.

What are NBFCs and how do they differ from traditional banks?

Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services but don't hold a banking license. Unlike traditional banks, NBFCs cannot accept demand deposits (like checking accounts) and don't participate in the payment system. They typically specialize in specific segments like consumer finance, vehicle loans, or small business lending. In India's credit boom, NBFCs like Bajaj Finance and Shriram Finance play important roles by serving market niches that traditional banks might underserve, making them important pieces of the overall credit ecosystem.

Why are infrastructure companies included in a credit boom theme?

Infrastructure companies are included because they're major borrowers and users of credit. Companies like Larsen & Toubro (LT.NS), Adani Ports, and GMR Infrastructure require substantial financing for their large-scale, long-term projects such as highways, ports, and airports. When credit is readily available at favorable terms, these companies can undertake more projects, expand faster, and potentially increase their profitability. In this way, they represent the "demand side" of the credit boom, complementing the banks and NBFCs that represent the "supply side."

What do "Projected Sales" and "Projected Profit" mean in the stock data?

Projected Sales refers to analysts' forecasts of a company's future revenue (total money earned from selling products or services) over a specific period, usually the next fiscal year. Projected Profit (also called projected earnings) is the estimated net income a company is expected to generate after subtracting all expenses from those sales. These forward-looking metrics help investors understand a company's growth potential and whether its current stock price might be justified by future performance. For companies benefiting from India's credit boom, strong projected figures may indicate that analysts expect them to successfully capitalize on the expanding financial environment.

What is "Dividend Yield" and why is it important?

Dividend yield is the annual dividend payment expressed as a percentage of the stock's current price. For example, if a stock pays ₹5 in annual dividends and trades at ₹100, it has a 5% dividend yield. This metric is important because it shows how much income you can expect to receive relative to your investment. Many established Indian banks and financial institutions pay regular dividends, providing investors with income in addition to potential stock price appreciation. A healthy dividend yield can be especially attractive in stable financial companies benefiting from the credit boom while possibly offering some downside protection during market volatility.

2 handpicked stocks

India's Credit Boom

India's financial sector is thriving with 10.3% loan growth and 10.4% deposit expansion. Our analysts have carefully selected the banks, financial companies, and industrial firms best positioned to benefit from this surge in credit availability and economic growth.

Han Tan | Market Analyst

Published on June 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

HDFC Bank Ltd.

HDB

Current price

$34.25

As India's largest private sector bank, HDFC is a primary beneficiary of the surge in both loan demand and deposit growth.

ICICI Bank Ltd.

IBN

Current price

$30.76

ICICI Bank, a leading private bank, is well-positioned to capitalize on the expanding credit market and robust deposit mobilization.

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+64.41%

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About This Group of Stocks

Our Expert Thinking

This collection targets companies across India's credit value chain. We've identified opportunities in banks directly profiting from increased lending, specialized NBFCs serving niche markets, and industrial firms using this capital to fuel expansion projects.

What You Need to Know

India's balanced loan and deposit growth signals a healthy financial system. This creates a favorable environment for lenders and borrowers alike, with banks enjoying higher interest income while industrial companies benefit from capital access for growth.

Why These Stocks

These companies were handpicked because they represent the full spectrum of India's credit ecosystem. From the country's largest banks to specialized lenders and capital-intensive businesses, each is strategically positioned to capture value from this credit expansion cycle.

Group Performance Snapshot

64.41%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 64.41% over the next year.

2 of 2

Stocks Rated Buy by Analysts

2 of 2 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

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Riding the 10.3% Loan Growth Wave

These companies are directly benefiting from India's expanding credit environment. With loan growth exceeding 10%, these carefully selected stocks are positioned at the center of this financial acceleration.

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The Full Credit Ecosystem

This collection gives you exposure to both sides of the credit story - the banks that lend and the companies that borrow and build. It's a balanced approach to capturing value across the entire credit chain.

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Emerging Market Opportunity

India's financial growth story is gaining momentum while other markets struggle. These stocks offer you entry into one of the world's fastest-growing major economies during a period of financial expansion.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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