India Households Flying to Safety Benefiting Banks and Insurers

ICICI Securities said in a note to clients, “Many will shift towards liquid and safer financial assets due to rise in loss of the income”.

Financial reputed intermediaries in the banking and insurance sectors will likely to get benefited from the current market scenario.

As people are moving towards a strong brand with fast execution & clean balance sheets for safety by buying protection for their life and health.

Indian Economy’s at Risk

Due to 84%, people of India saw a fall in their income under the world’s strictest lockdown situation and it was also being said that many won’t survive for long without any assistance, founded in a study by Chicago Booth’s Rstandy Center.

India’s economy is heading in a lining for its first annual contraction in four decades followed by the closing of million of companies resulting in losses of millions of jobs after placing a strict nationwide lockdown on March 25, 2020.

Raised Liquidity for Health & Life

HDFC Bank, Kotak Mahindra Bank, SBI Life Insurance Co., and ICICI Prudential Life Insurance co. – are brokerage positive. As many households are looking to raise liquidity by keeping cash and bank deposits, along with getting insurance for health and life.

Whereas we also saw a significant fall in demand for big-ticket and non-compulsory spending on leisure, tourism, and expensive consumer durables.

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