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.
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:
23rd January 2019
IBEX,MMRDA Ground,BKC, MUMBAI
MD & CEO,Valuefin
Head Technology Digital Lending, Aditya Birla Finance Limited
Head Business InformationInnovations Mahindra Finance
Head- Retail & Rural Business Adani Capital
Assistant Director General, UIDAI, Government of India
Chief Information Officer (CIO) - BOB Financial Solutions Limited
CTO, Small Business FinCredit Ltd
Director & COO, Tradebulls Securities