Revankar on the collections front said that in the digital era companies do not require any specialise teams, but rather they can have some local arrangements at small scale.
Reintroduction of the Partial Credit Guarantee Scheme, introduced during Covid , will help NBFCs serve India’s credit-deprived MSMEs better.
The company’s net interest margin is likely to sustain at current levels because most geopolitical uncertainties have not materially heightened, the Shriram Finance executive vice chairman said.
The cost of funds may increase by 5-10 bps in the fourth quarter after the RBI increased the risk weight on bank loans to non-banking finance companies, Shriram Finance executive vice chairman Umesh Revankar said.
Shriram Capital is looking to start the asset reconstruction business this financial year, said the Executive Vice-Chairman.
The NBFC is targeting a growth in margins of around 8.5 percent for FY24, despite the higher costs of borrowing. It will stay away from exposure to personal loans because it is risky.