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Jefferies says impact of West Asia conflict on Indian financials likely to be divergentJefferies said the conflict in West Asia may impact Indian financials divergently. Banks may see loan growth but face higher credit costs. NBFCs may experience a drag on NIM, credit cost, and growth.By Shloka Badkar  March 12, 2026, 2:15:14 PM IST (Published)1 Min ReadBrokerage firm Jefferies on Thursday, March 12, said the impact of the conflict in West Asia on Indian financials will likely be divergent.

The Iran-Israel-US war entered its 13th day on Thursday and has resulted in disruption in trade, supply and volatility across sectors and global markets.

Jefferies said lenders may witness an increase in loan growth, but the risk is from higher credit cost.

Non-banking financial companies (NBFCs) may face a drag on net interest margin (NIM), credit cost and growth, it added.

The brokerage is of the view that portions of small and medium enterprise (SME) (Export and imports/gas-linked), commercial vehicle and overseas loans may witness higher risks.

However, the valuations of lenders are near lows, so the brokerage sees limited downside.

Among non-lending financials, (NLF), exchanges gain from volatility, Jefferies said. Life insurance, general insurance andfintech face lesser risk. However, capital market players face higher impact, the brokerage added.

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