SME Times News Bureau | 16 Jun, 2018
financial companies (NFBCs) need to focus more on medium and small
enterprises, the returns from which are much higher than from large
corporates to whom NBFCs have much larger exposure, a
Bank of India (RBI) official
RBI also asked NBFCs to meet the legitimate funding needs of the
micro, small and medium enterprises (MSMEs).
are trying to be the mirror image of banks, as much of your lending
now is towards large corporate and your lending to MSMEs is not much,
where you get better margins," RBI Chief General Manager
(department of non-banking supervision) P. Vijaya Kumar said at an
event here organised by the Indian Merchant Chamber.
is despite the fact that by lending to large corporates NBFCs are
getting lower returns than what they would have got from by lending
to MSMEs," he said.
"When you are lending, you
cannot give on money to everybody. You need to finance those
activities that are relevant. If you look at global value chains and
get finance done then you won't get into any losses," he added.