Search
NBFCs Cash in on Traditional Banks’ Bad Loan Problems
May 18, 2017
Traditional lenders i.e. the public and private banks have been struggling with the problem of NPAs (Non-Performing Assets) since past three years, to tackle which the government had also issued an ordinance recently. However, seeing this as an opportunity, the Non-Banking Financial Companies such as P2P lenders have furthered their business.
Incred is one the many NBFCs that have cashed in on the woes of the traditional banks. According to Saurabh Jhalaria, the SME division head of the company, it plans to disburse about $234 million in credit by March next year. A study by the research company Crisil has also revealed that the market share in wholesale finance and SME loans of NBFCs have doubled in the past five years.
