How do you see the financials perform in the year 2022?

I suppose, you are referring more to the banks and NBFCs and not to insurance. I still feel that insurance could do pretty well in 2022, even as banks and NBFCs in the lending business will have a much tougher time. In fact, they could see a lot of tumult. This will start with the added stress caused by disruption from the Fintech plays. That is happening in every aspect of lending and they have largely reworked how lending happens in India.

Then there is the challenge of higher bond which is going to put pressure on cost of funds and also on investment portfolios. As the RBI large heartedness on NPAs comes to an end, the true picture on many of the financials may come out in the open. Let me clarify that financials do not have toxic assets to the extent they had in 2008 during the sub-prime crisis. However, year 2022 is when the weightage of financials in indices gets rationalized.