BFSI in India Resilient to World Unrest, Says Ex-HDFC Chief Parekh
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Former HDFC Chairman Deepak Parekh delivered a vote of confidence for India’s BFSI sector at the CII BFSI Summit 2026, stating it is steady and shielded from major global instability impacts. In his Tuesday interaction with the press, he underscored the sector’s robustness post the HDFC-HDFC Bank merger.
While BFSI sails smoothly, Parekh warned of headwinds for hospitality, aviation, and logistics due to their exposure to international risks. He predicted a mild dip in loan inquiries from cautious markets, but no systemic alarms for banking, finance, or insurance.
Sectors tied to oil prices, inflation, airlines with waning travel, declining hotel stays, and logistics snarls are most at risk, Parekh observed. This selective vulnerability reinforces BFSI’s superior safeguards.
Queried on Atanu Chakraborty’s resignation from HDFC Bank’s chairmanship, Parekh recused himself, no longer being a board member. He aligned with RBI’s view of the bank’s financial health and ethical standing.
On REITs, Parekh described an emerging paradigm where developers divest to institutional and foreign buyers forming REIT portfolios—a shift towards institutionalized real estate funding. Foreign direct investment will persist, he forecasted, with Indian corporates aggressively entering financial arenas.
AI and tech innovations promise to turbocharge BFSI growth. Parekh wrapped up by affirming that despite uneven global effects, domestic strengths ensure financial resilience. This perspective, rooted in the transformative 2023 merger, instills optimism across India’s economic spectrum.
