Avoid IDFC, PFC at current level: PN Vijay

Vijay told CNBC-TV18, “Among the NBFC’s- IDFC’s, PFC, and REC are a bit more sticky compared to the NBFC’s which are Business-to-consumer (B2C) model like your LIC Housing or some of the Auto Finance companies. These are really with the corporate sector in a way and they swing with IIP and industrial growth, etc. Where as you and I know a lot of pressures, softness.”

He further added, “So, all these three finance companies which target borrowers in the industrial space apart from the financing costs which will pressurize them would be under a cloud. So one would sort of stay clear of them until one sees a very strong dent in the interest rates.”