There is only 1 HDFC Limited which has grown large in HFC sector. It gets tough to grow beyond a level in single segment. In financial sector, diversification is the key. Even likes such as Bajaj, Chola are diversified now. Today, there are better opportunities in market as compared to pure play HFC’s as their product portfolio is limited, no fees income, high competition, lower Yield and only advantage-Lower NPA. IMHO, negatives are more as compared to positive. History speaks, pure CV financiers – Shriram, M&M, pure Gold loan financiers-Muthoot, Mannapuram are unable to grow when Banks/Large NBFC’s focus on their segments. Loan book has to be diversified for any Financial institution to become big.
| Subscribe To Our Free Newsletter |
