For the MSME segment, the Atmanirbhar Bharat programme has opened up much needed room for the financial institutions to lend easily. The Finance Ministry’s fund of Rs 15,700 cr, which is 2x times higher than last year will help revive closed down units and job losses as a separate line of liquidity would now be available. The introduction of a special framework for MSME litigation will also support small companies to overcome legal hurdles.
NBFCs
Small and medium scaleNBFCs who are at the forefront of the lending cycle will have better days ahead as the budget has prioritised growth. This would mean further augmentation of liquidity and hence, we can expect more credit disbursal. The introduction of bad bank would also provide a much-needed cushion in order to tackle NPAs and provide quicker resolutions.
On Fintech’s
The allotment of Rs 1,500 cr for the promotion of digital payments would help Tier II & Tier III cities better infrastructure. The Government’s proposal to reduce the margin money requirements for start-ups from 25% to 15% will further boost the entrepreneurial spirit in the country. Launching of a world class fintech institution would be a big confidence booster for the market participants, particularly for the bond market that will also help in streamlining debt securities.
Development Finance Institute
The proposal to set up a Development Finance Institution (DFI) with a capital of Rs 20,000 crore would certainly help the MSMEs to get further credit support from the Government. This would in-turn catalyse financing the infrastructure projects such as national infrastructure pipeline am ambitious world-class project that would improve the quality of life for citizens.
Infrastructure
The budget allocation for the affordable housing, overall infrastructure, will bring sustainable impact to these segments. Lending in the construction sector should become easy as recoveries would become better due to increased sales, especially in the non-metro cities. The announcement of Rs 1.10 lac crore to critical infrastructure areas like Railways, national highways and privatising of the Airports would ease the sector related issues, as lending is the key to address needs of the overall infrastructure sector.
About Capital India Finance Limited
Capital India Finance Limited (CIFL), is a listed entity promoted by Mr H. K. Narwar, with a Market Capitalisation of over Rs 1,000 crand the loan exposure of over Rs 500 crore. The Company’s major focus is business lending in MSMEs, Real Estate, Infrastructure, and is a major player in the home loans segment. The Company is also a major player in Fintech as well as Forex services through subsidiaries namely Rapipay and RemitX respectively. CIFL is known to provide customised financial solutions to address the ever-increasing demand in the Tier II and Tier III cities, especially in the housing finance area.
About Dr. Harsh Kumar Bhanwala
CIFL is headed by Dr Harsh Kumar Bhanwala who is the Executive Chairman at the Company. He is also the ex-Chairman of NABARD, a leading Apex financial institution for Agriculture and Rural Development and the Chairman of SEBI’s Technical Group Committee. Dr Bhanwala is an industry veteran with his vast experience in the areas of financial inclusion, rural lending, microfinance, cooperative credit institutions and much more.