Reversal in rate cycle will affect NBFC margins: Macquarie Capital

In an interview to CNBC-TV18, Suresh Ganapathy of Macquarie Capital Securities spoke about the finance space in general. He also shared his views on Reliance Communications (RComm)-Aircel deal falloff.

Will have to see how Brookfield-RComm deal progresses, said Ganapathy.

Talking about insurance companies, he said there is lot of cyclicality in insurance companies as most of their policies are unit linked insurance policies (ULIP).

Do not see any further re-rating in insurance companies, he said.

According to him, if there is a reversal in the rate cycle, it will affect non banking financial companies (NBFC) margins.