India Credit Update: 2026 India Conference Takeaways for credit investors

Research evidence excerpt

India Credit Update: 2026 India Conference Takeaways for credit investors

re funding, limiting external Shriram Finance Ltd. (SHFLIN) 11

refinancing risks. However, margin volatility is likely to persist amid commodity price UPL Ltd (UPLLIN) 12

uncertainty driven by geopolitical uncertainties. Incremental capex in infrastructure and Vedanta Resources Plc (VEDLN) 12

energy-linked sectors should sustain medium-term growth on the back of resilient Acronyms 13

balance sheets but may temper near-term free cash flow.

Research Analysts 17

NBFCs: Strong growth outlook, asset quality to watch

NBFCs are expected to maintain healthy AUM expansion. Regulatory easing, especially in Rachna Jain, CFA

gold loans and co-lending, should support incremental growth. While asset quality is Research Analyst Merrill Lynch (Singapore)

broadly improving, also supported by rundown of legacy books in select cases, stress +65 6678 2972

may persist in MSME and microfinance segments in the near term on macro weakness rachna.jain2@bofa.com

amid the West Asia conflict, warranting continued underwriting discipline. At the same Lefu Li, CFA Research Analyst

time, interest margins may come under pressure with higher cost of domestic financing Merrill Lynch (Hong Kong)

while competitive pressures may slow transmission. lefu.li@bofa.com

Jing Peng

Banks: Growth target still holds with stable asset quality ResearchMerrill LynchAnalyst(Hong Kong)

Indian banks still likely see strong loan demand and thus keep their loan growth target +852jing.peng2@bofa.com3508 3105

unchanged despite macro uncertainty. No asset quality deterioration has been found Asia Pacific Credit Rsch Grp

across sectors with some banks still expecting to see lower credit costs. However, Merrill Lynch (Singapore)