Microfinance, gold loans to do well; Paytm issue has no business impact: Digant Haria

Digant Haria, Founder of GreenEdge Wealth Services, said select segments within financials like microfinance and gold loans are turning around and will continue to do well despite the macro uncertainty.

Recent banking earnings have remained steady, with asset quality and margins holding up. There has been an improvement in credit costs for some lenders, including Axis Bank, and a turnaround in microfinance contributing to performance at IndusInd Bank. However, there are near-term risks from external factors such as fuel price changes and weather-related disruptions.

He sees opportunities in L&T Finance and Ujjivan Small Finance Bank

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On Paytm, he believes the recent regulatory developments may affect sentiment but not have any impact on business operations. “This issue has zero business impact,” he said, explaining that payments, lending distribution and wealth segments remain intact.

While there may be a sentiment-driven reaction in the stock, the company continues to gain share in payments and merchant acquiring. Haria, however, would prefer to wait before taking fresh positions in the stock. He also indicated that any future regulatory clarity could support expansion in lending.

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