However, the counterargument suggests that banks and NBFCs are clients rather than direct competitors. The niche business model assists banks and NBFCs in identifying creditworthy customers. While the management could aggressively acquire customers in the low-ticket loan segment, they refrained from doing so due to concerns about the potential long-term impact on their asset quality. This decision itself indicates that the management is on the correct path.Furthermore, the take rate is higher in large-ticket size loans compared to postpaid types. From a long-term perspective, the minimal impact on revenue is a result of this decision.
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