New Delhi, May 5: India’s Banking, Financial Services, and Insurance (BFSI) sector is stable and will not be significantly affected by global uncertainties, according to Deepak Parekh, former chairman of HDFC Limited (now HDFC Bank), who spoke on Tuesday.
However, he noted that the current global conditions could impact sectors such as hospitality, aviation, and logistics, which are more sensitive to external threats.
During the second edition of the CII BFSI Summit 2026, Parekh told the media that there are no major concerns for the BFSI sector at present. However, a slight decline in new loan applications may occur due to sluggish market sentiment.
He pointed out that industries related to crude oil and inflation, including airlines, hotels, and logistics, are more vulnerable to global uncertainties. Negative trends in travel have already led to a decrease in hotel occupancy rates.
When asked about concerns regarding the resignation of Atanu Chakraborty from the part-time chairman position at HDFC Bank, Parekh stated that he has no ties to HDFC Bank anymore and cannot comment on the matter.
Nonetheless, he mentioned that the Reserve Bank of India has already confirmed that the bank is strong, well-capitalized, and faces no ethical issues.
Regarding Real Estate Investment Trusts (REITs), Parekh indicated that India is moving towards a model where developers prefer to sell properties, while large institutional investors and global players are buying and consolidating these properties into REIT structures.
Additionally, he expressed optimism about foreign investment in the financial sector, expecting that global companies will continue to invest in India. Domestic corporate groups are also aggressively expanding in financial services.
He emphasized that with the increase in both foreign and domestic investments, along with advancements in AI and technology, these will play a crucial role in the next phase of growth for the BFSI sector.
According to Parekh, despite varying impacts on different sectors due to global uncertainties, India’s financial system remains resilient, supported by strong domestic participation.
The merger announcement of HDFC Limited with HDFC Bank was made in June 2023.
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