The latest Nirmal bang interview highlights a very important point.
- NBFCs with >1000 branches need to take approval for opening every new branch which itself takes more than a year. This is leading to much slower growth rates of new branches in Northern India, especially in states like Bihar, Assam, etc. This maybe one of the reasons for the anemic growth in number of branches over the last 5 years.
- According to their internal survey, about 1/3rd of their gold loans go for working capital financing of MSMEs, 1/3rd is used by farmers for income generating activities and the rest 1/3rd is used for consumption
Disclosure: Invested (position size here)