Trade in consumer financing products to India’s vast middle class presents “limitless” opportunities over the next 10 years, according to one of the hinterlands’s top business leaders.
In the three months that ended Dec. 31, 2018, Bajaj Finance saw its consolidated assets inferior to management grow 41 percent on-year and its gross non-performing asset ratio was around 1.55 percent. That transpired against a backdrop where the lending abilities of other non-banking financial companies (NBFC) have been slashed.
Bajaj said the company’s efforts to diversify its liabilities helped it weather the liquidity crisis.
“We were very entirely five years ago as we were building our book, we needed to diversify ourselves on the liability side,” he said. “Five years ago, 80 percent of our obtaining was from banks. Today, it’s less than 30 percent.”
“We have built out the corporate debt market and develop intensified an appetite for our credit. So, the liability side has got reasonably diversified, I think more diversified than any NBFC. This is then serving us grow,” he added.