Minimum capital requirement for NBFCs is 10% so they can leverage its capital several times in the lending business.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
Joined: 01/Jan/2006
Location: India
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Posted: 03/Dec/2007 at 11:35am
Even banks leverage 12-14 times so that should not be a differentiaing factor.
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I think Branch licenses should be the differentiating factor. NBFCs dont have to obtain licenses.
Shashi jee can give us a comprehensive picture of NBFCs v/s Banks.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
Joined: 13/Oct/2006
Location: India
Online Status: Offline
Posts: 3542
Posted: 04/Dec/2007 at 1:27pm
RBI IS A SMART KID it will control nbfcs the same way it contrls banking thus allowing both to survive and grow simultaneously finally it will be the survival and growth of the smartest.do nbfcsexisit in china? and how have banks done there vis avis nbfcs? if icbc is where it is even with ge capital and fullerton around then indians banks will also acheive that type of mkt cap in due course of time
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
I remember last year HDFC Bank applied for NBFC license to start sub-prime lending but RBI refused...
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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