NBFCs promoted by big industrial houses best placed for new banking licences

We believe the rerating of potential winners is warranted — the improved long-term growth potential is the potential. The swings and roundabouts changes to near-term ROEs (Casa comes in, offset by reserve ratios and higher costs) is not the real issue. The heightened competition is, in theory, a threat to existing private players but we see the new players taking at least 4-5 years to make a real difference. The short-term challenge for existing players should be staff retention.