NBFCs: Leapfrogging to Prosperity

About

In a world of mounting NPAs of the bank and hardening of lending norms of the banks by the regulators, the windfall gain from the market situation is being reaped by the NBFCs in the country. With an improving asset quality of 4.4% to 4.5% in 2018, the sector has overperformed its previous record of 4.7 to 4.8 % in NPAs as per ICRA’s credit rating reports. The scope for this sector is further shining with an estimation of 19% to 21% growth estimation of the entire sector in a regime when the banking sector is struggling to come out of its burgeoning NPA and governance bubble.

In this current scenario, Bankers loss = NBFC gains.

What does this mean?

The Sector surely has a tremendous growth potential and the top 18 NBFCs put together are giving even the established banks a run for their money and are constantly looking for opportunities to catapult their businesses to greater levels.

What’s the opportunity?

This growing sector is a lucrative business proposition for all the key players who can empower this sector.

Namely:

Banks- Funding this sector

Insurance and AMCs- aiming  to enroll with this sector as their business channels

Technology companies: planning to equip this sector with process automation, customer experience, analytics and other areas.

Credit rating agencies : planning to equip this sector with better information on borrowers

Payment service providers

HR solution and resource providers.

Asset Reconstruction companies.

And many more: