"Since HDFC Bank is a darling of the market, the expectations were higher and the lower delivery led to harsh reactions," said Siddhartha Khemka, head of research at Motilal Oswal Securities.
Analysts said NBFCs across asset classes from microfinance to housing to vehicle finance are expected to record healthy growth in the third quarter that ended December 2023. However, there will be a differentiation of the impact on margins for these companies due to the rise in the cost of funds.