NBFCs say the industry scenario is depressing. But, they need to understand that opportunities are plenty. It is high time NBFCs took a long-term view of their business. They need to develop fee-based business and get into niche financing.Not every NBFC can become a financial supermarket. Nor is there room for dime-a-dozen such supermarkets. So, it is a profitable business proposition for NBFCs to diversify. Not just in products, geographically too.
It is here micro-credit assumes significance. Micro-credit not only enables NBFCs to tap niche geographical areas with a specific industry focus, it generates financing opportunities too both for the NBFC concerned and for an array of service-providers.
But, developing fee-based business and micro-credit are long-term affairs. There are no short cuts here. Only those NBFCs with staying power and long-term vision should stay on. It is time others got out of financial services.