Bad loans problem brewing?🥴

Bad loans problem brewing?🥴

Last week, we saw {TICKER-HDFC-HDFC}’s management caution the markets about rising bad loans from the COVID mess. Yesterday, {TICKER-BAJFINANCE-Bajaj Finance} echoed the sentiment, asking investors to brace for a horrible couple quarters at least as it struggles to see past all the haziness.

Flurry of downgrades from analysts followed — with many expecting a 10-15% drop in profits over the next couple quarters. Investor mood was promptly spoiled, and Bajaj Finance was dragged down 6% by the end of the day.

Bottomline — that's two of the most well managed financial services giants in India offering a pretty bearish view on the near term state of affairs.

What’s worse is that all of that’s running extremely counter to the market’s current unfettered exuberance.

Episode 19 Its My First Time So Im Nervous GIF by truTV’s Talk Show the Game Show
GIPHY