NBFCs should focus on service, says Mishra

TIHCL is the first-supported NBFC that is working to ensure that incipiently sick industries are nursed back to financial health.

By Author  |  Business Bureau  |  Published: 13th Jun 2018  10:52 pm
Non Banking Finance Companies (NBFCs)
A report on BFSI segment was released at the ELETS NBFC Tech Summit on Wednesday.

Hyderabad: Stressing the role played by the Non Banking Finance Companies (NBFCs) in reaching out the under-banked, Ajay Mishra, Special Chief Secretary, Telangana Energy department, asked the NBFcs to ensure that solutions are available to all and not only to the tech-enabled.

Special attention should be paid to the customer service segment as this is the point of contact between aggrieved customers and the service providers, he said.

Speaking at the Elets 4th NBFC Tech Summit on Wednesday here, he said NBFCs have evolved over time to offer new tailor-made financial products. They are also in the forefront to embrace new technology, he said. He, however, added that care should be taken to ensure that one does not become slaves to technology and instead should focus on reaching out and solving problems in real life. The service or offering should be available irrespective of customers are technology enabled or not.

Mishra, who about a decade back was at the helm of NBFC regulations, said power sector in Telangana had immensely benefited from NBFCs.

“Power sector in the State needed big investments and they came from two NBFCs – Power Finance Corporation and Rural Electrification Corporation,” he said adding that NBFCs have also come to the aid of many micro, small and medium enterprises by extending loans to sectors that conventional banking channels did not prefer to cater.

Mishra said Microfinance Institutions thrived as they catered to people who were not in the banking fold, he pointed out.

Telangana Industrial Health Clinic Limited (TIHCL) Adviser B Yerram Raju said Telangana Government initiated TIHCL to help ailing industries. It is the first-supported NBFC that is working to ensure that incipiently sick industries are nursed back to financial health.

It offers diagnostic services of the industries as well as small loans to the needy companies. Several industries have bought an equity stake in TIHCL, he said adding that technology was only an enabler and not the solution in itself.