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'NBFCs have enormous retailing opportunities'

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Our Regional Bureau Ahmedabad
Last Updated : Mar 18 2013 | 4:48 PM IST
Non-banking finance companies (NBFCs) are playing a significant role in the financial sector and they have tremendous opportunities in the retail sector, said Vani Sharma, regional director for Gujarat, the Reserve Bank of India (RBI).
 
Non-banking finance companies' higher level of customer orientation, fewer pre- and post-sanction requirements, simple and speedy tailor-made services and higher rate of return on small savings have assured them a loyal clientele despite higher costs, said Sharma.
 
Sharma was speaking at a function organised to celebrate the tenth anniversary of the Gujarat Finance Companies' Association (GFAC) in Ahmedabad on Tuesday.
 
"Non-banking finance companies have been instrumental in providing funds and small savings avenues to various sectors. These companies constitute an important link between banks and customers in look out for more services. They have become an accepted and integral part of the Indian financial services in view of their complementary as well as competitive role," said Sharma.
 
"We have taken up the issues of deposit raising limit for Non-banking finance companies from 1.5 to 3.5 times of the net-owned fund, getting refinance facility from the National Bank for Agricultural and Rural Development (Nabard), preparation of code of conduct for members, systems manual and negotiation for block deal with credit bureau," said Mahesh Thakkar, co-ordinator of the Finance Industry Development Council (FIDC), a self regulatory organisation for Non-banking finance companies.
 
While outlining a series of measures taken by the FIDC, Thakkar said, "Regional chapters will also be affiliated with FIDC."
 
Mukesh Gandhi, chairman, Gujarat Finance Companies' Association, said, "Tremendous opportunities are unfolding for NBFCs in the retail lending business consequent to a cultural change sweeping across the country, where spending is being given priority over saving. With growing consumerism, several new products and services are opening up with new avenues."
 
GFCA honoured, as part of tenth anniversary celebrations, its founder members, chairmen and providers of special services.
 
Those honoured included D D Mehta, B N Dave, Himal Parikh, Rajendra Shah, P R Vyas, Mukesh Gandhi, G M Shah, G R Shah, Pravin Patel, Kaushik Patel and Atul Dalal.
 
Savan Godiawala, vice chairman, GFCA, coordinated the programme. Umesh Shah, secretary, GFCA, also spoke.

 
 

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