homemarket NewsMarcellus analysis reveals growth of big companies and lending consolidation in NBFC & banking sector
Marcellus analysis reveals growth of big companies and lending consolidation in NBFC & banking sector
The dominance of big players in the NBFC and banking space, alongside ongoing consolidation in lending, indicate significant shifts in the competitive landscape.
The dynamics of the non-banking financial company (NBFC) and banking space indicate that the sector is witnessing a trend where large companies are becoming even more dominant. As the industry matures, prominent players are leveraging their scale, resources, and market presence to expand their market share further.
Saurabh Mukherjea of Marcellus Investment Managers spoke about the financial and industrial sectors during an exclusive interview with CNBC-TV18. He emphasised the trends observed in the NBFC and banking space, highlighting the consolidation among big players. Mukherjea also expressed optimism about the prospects of the speciality chemicals business in the coming years, attributing it to the ever-increasing demand for NBFC paper.
He said, "In the last 20 years, there have been only 2 successful NBFCs in India – Bajaj and Chola; I have no reason to believe that Jio Finance will not be successful and also HDFC is no longer an NBFC. So, there is plenty of demand for NBFC paper."
In the context of the current financial market, Mukherjea pointed out the abundance of demand for NBFC paper. This demand is a result of various factors, including the need for alternative sources of financing, attractive yields offered by NBFCs, and the diversification of investment portfolios.
During the interview, Mukherjea highlighted the ongoing consolidation within the lending space. As larger financial institutions strengthen their positions, they may explore opportunities for acquisitions and mergers, leading to a more concentrated industry.
While talking about specialty chemicals, he expressed optimism about the business, foreseeing robust growth in the years to come. The sector's prospects are buoyed by factors such as increasing demand for its products, rising industrialisation, and the push for innovation and sustainability. The specialty chemicals industry is expected to play a pivotal role in various sectors, including pharmaceuticals, agriculture, and manufacturing, creating ample opportunities for businesses operating in this domain.
Disclosure:
RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.
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