V Vaidyanathan - Founder & Chairman, Capital First while in conversation with CNBC-TV18’s Abhishek Kothari is of the view that one-two year forward outlook the trajectory for interest rates in India is definitely lower.
According to him, housing loans coming below 8 percent would be a seminal movement and one is eagerly looking forward to the time when housing loan rates come down to 7-7.25 percent, like was seen in 2006 or 2007.
When asked how their company balance sheet was growing at 25 percent plus when India’s GDP was low at 5.7 percent, Vaidyanath explains that GDP stands for the overall economy, but the company is operating in a segment where they finance customers who are not financed with the existing banking system, using technology as a platform. So that along with good governance has helped them clock good growth, he adds.
Talking about things that have changed post demonetisation and 99 percent of the money coming back into the system, he says the level of digitisation has increased post demonetisation. Giving the example of his own firm, he says collection from electronic means post demonetisation has gone up to Rs 32000 per month from Rs 8000 per month before November.
On the goods and services (GST) front, he says the full impact of that will play out over next few years but it is a big move for the economy and will do good in the long run.
When asked about Privacy Law's impact on financials, he says in fact it would make the financial services companies more responsible on how to access, store and use the data. The law is progressive, he adds.
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