NBFC License and NBFC Registartion

 

Non-Banking Finance companies are expected to report as much as 35 percent growth in earnings as retail loans by small and medium enterprises continued at a brisk pace even as state-run lenders continued to hold on to their purse strings due to bad loans. Housing finance companies will maintain momentum with the growth coming from the affordable segment.

Good monsoon, lower income reversal and lower credit cost due to stable asset quality will help vehicle financing report strong traction particularly tractor and commercial vehicle financing. Consumer finance companies will maintain growth momentum due to pick up in sales in festive season. Micro finance institutions are expected to report softer earnings due to increased provisioning.

Small finance banks are expected to see marginal growth in assets under management coming from pick up in SME, LAP and home loans and conscious effort to lower exposure in MFI portfolio. Asset quality of most NBFCs are expected to improve in the third quarter of the financial year, with improvement in collections in most segments and in rural areas. “Among HFC we expect asset quality to be broadly stable at LICHF and PNBHFL, while Repco could see some improvement on a sequential basis due to gradual stabilisation of regional issues,”.

Non-banking finance companies (NBFC) continue to witness an uptrend in growth, especially on the back of higher retail credit offtake and regulatory changes. This year will be pivotal for NBFCs as they navigate the aftermath of demonetisation and impact of GST on businesses and customers

India is a smorgasbord of multiple markets, each with its cultural and social milieu. However, the opportunities for unification are around the Indian mindset of seeking value. For us our bottom-of-pyramid focus is a larger mission of delivering affordable financial services to support the common man through his life cycle needs. Another key factor driving increased rural consumption is penetration of technology and increased awareness around emerging livelihood opportunities. Upliftment in rural economy has direct positive impact on two-wheeler industry helping, in turn, NBFCs focussed on that market.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post Navigation