Jefferies Forum showcases financial growth strategies in Asia

The Jefferies Asia Forum recently focused on the financial sector, featuring discussions from several financial institutions including HDFC Bank, IDFC First Bank, and Paytm. Many of these organizations expressed optimism about their growth strategies. HDFC Bank is targeting a 15 percent growth in deposits for the next year, which is above the sector average of 11 percent. The bank has improved its loan-to-deposit ratio and expects to grow its personal loans despite competition from lower rates offered by public sector banks. IDFC First Bank addressed challenges related to microfinance, particularly due to regulatory changes in Karnataka that affected collections. However, the bank is seeing signs of recovery in overdue loan ratios and plans to adjust its microfinance exposure for long-term stability. Outside of microfinance, it maintains strong asset quality and healthy deposit growth. Life insurers like HDFC Life and ICICI Prudential Life are awaiting clarity on possible regulatory changes in distribution norms, which could impact their operations. They have indicated that a lengthened free-look period may not significantly affect their financials, and they expect premium growth of 12-15 percent. Paytm highlighted the success of its merchant business, which has improved profitability. Although retail lending volumes have dipped, the company is confident this will recover gradually. Paytm is also looking to expand into wealth management to further engage clients. Meanwhile, BSE is considering changes to its market strategies, particularly regarding open interest limits and trading volumes. They are focused on improving liquidity in their options market and optimizing their operations for better competitiveness. Overall, the forum illustrated a positive outlook among financial institutions, despite some regulatory uncertainties. Each organization is working to capitalize on growth opportunities as they navigate market conditions.