Indian Banks & Financials

Indian banks and financial issuers.

The Indian financial sector continues to present a compelling narrative for fixedincome investors, characterized by robust credit fundamentals and a constructive macroeconomic backdrop. As domestic credit demand remains resilient, nonbank financial companies and specialized lenders are maintaining strong liquidity profiles, offering an attractive entry point for those seeking exposure to emerging market credit. Current market pricing reflects a premium for these issuers, providing a meaningful yield pickup over comparable regional peers. Relative value opportunities are particularly evident in the midtolong end of the curve, where yields have adjusted to reflect both global interest rate volatility and firm domestic growth prospects. For instance, investors can capture yields exceeding 8% through select issues from lenders like Power Finance Corporation (CPRGLC) and IIFL Finance (IIFOIN), which currently offer yields to worst of 8.265% and 8.147%, respectively. These levels, coupled with the underlying stability of the Indian financial landscape, offer a favorable riskadjusted return profile for portfolios targeting highcarry opportunities in the USDdenominated space.