In a reassuring address amid swirling global economic storms, ex-HDFC Chairman Deepak Parekh declared India’s BFSI sector as a bastion of stability, unlikely to suffer significant blows from international unrest. His comments, delivered during media interactions at the CII BFSI Summit 2026’s second installment, paint a picture of fortitude in the face of adversity.
Parekh was unequivocal: the banking, financial services, and insurance pillars stand firm. However, he cautioned that ripple effects could touch hospitality, aviation, and logistics, sectors hypersensitive to external disruptions. Market sluggishness might temper fresh credit demands, but no overarching threats loom for BFSI, he affirmed.
Global uncertainties hit hardest at crude oil sectors, inflation-prone businesses, airlines grappling with fewer passengers, hotels seeing occupancy slumps, and logistics facing trade hurdles. Parekh’s analysis highlights how these industries bear the brunt, contrasting sharply with BFSI’s buffered position.
On the recent exit of HDFC Bank’s part-time chairman Atanu Chakraborty, Parekh sidestepped specifics, citing his non-involvement with the board. He echoed RBI’s endorsement of the bank’s solid capital base and clean governance record.
Parekh’s vision for REITs charts a promising trajectory: developers selling assets to big investors who bundle them into REITs, fostering a vibrant real estate investment ecosystem. He anticipates continued fervor from global firms investing in India, alongside domestic conglomerates pushing boundaries in finance.
Technology and AI emerge as game-changers, set to redefine BFSI’s future. Parekh concluded on a high note, stressing that varied sectoral pressures notwithstanding, robust local engagement keeps India’s financial machinery agile and resilient. The HDFC merger in June 2023 further bolsters this narrative of strength.
