Corp NBFCs look to steer lending boom
    Corp NBFCs look to steer lending boom - Times of India
    Mumbai: India's top business conglomerates and billionaire industrialists are revving up a lending boom through non-banking finance companies (NBFCs) even as public sector banks hit a pause.

    Mumbai: India's top business conglomerates and billionaire industrialists are revving up a lending boom through non-banking finance companies (NBFCs) even as public sector banks hit a pause.As the stock markets ascribe higher multiples on financial services businesses, NBFCs are becoming the port of call for many.It's so red hot that setting up an NBFC is reminiscent of the troubled power plant built in the last decade, a top banker quipped in lighter vein recently.Sanjay Agarwal, who is taking Au Finance for an IPO, has had the backing of investors like ChrysCapital, Kedaara and Partners Group.Several corporates are trying to emulate what Bajaj Finserv has done — one of the few corporate NBFCs with around 20% return on equity and trading at 4 to 5 times book value.Not a single player in the top three list of life and general insurance businesses even though Reliance Capital and Birla Sunlife are in the top five in mutual funds," said Vimal Bhandari, former MD of IndoStar Capital and ex-head of the financial services unit at IL&FS.Bhandari added that it was essential for corporates to understand​ the responsibility of building a liabilities business that is leveraged 5 to 6 times, and maintain a sanitised lending ecosystem.

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