According to Vishal Kampani, managing director of JM Financial Group, there is substantial desire in the capital market for digital technology-enabled high-growth enterprises, and India will see a number of IPOs in that area in the coming years.
With the impact of the epidemic fading, he anticipates credit demand to improve and interest rates to remain low, boosted by the Reserve Bank of India’s supportive policy stance. Excerpts that have been edited
What can NBFCs take away from the pandemic?
The most important takeaway from the epidemic is the importance of having a healthy balance sheet. A solid balance sheet with a low debt-to-equity ratio can absorb more provisioning and provide liquidity even in difficult markets.
What is your opinion on the credit demand in the industry?
With the pandemic’s impact progressively fading, credit demand is expected to improve from present levels. Interest rates are projected to continue low due to the RBI’s supportive policy stance. Brownfield initiatives will be the driving force behind infrastructure development. Vaccination rates may rise, and the economy may improve overall.
What are your plans for fintech lending?
Fintech firms have made excellent use of technology in their lending operations. We are continuing to assess options such as cooperating with the fintech world, and if we find it appealing, we should consider lending to this sector.
How, if at all, will a third wave of coronavirus affect the economy?
The third pandemic wave will be easier to deal with. The infection rate may increase, but it will not be as dangerous as in the past. The economy is predicted to grow at a quicker rate as a result of increased capital spending by the federal and state governments, as well as more private sector project announcements.
During the pandemic, NBFCs faced a liquidity difficulty. What’s the current situation?
In general, the NBFC sector’s liquidity situation is improving. A number of factors, including enough systemic liquidity and low funding costs that lead to consistent profits, have aided strong NBFCs in their recovery from recent crises. This, however, is not the case with NBFCs and small Banks.
How do you intend to integrate your reclassification of business segments with your strategy?
We’ve reorganised our company areas to focus even more on our customers. Investment banking, mortgage lending, alternative and troubled credit, wealth management, and securities business are the many segments. Because they deal with corporate, government, institutional, and rich clients, these companies collaborate closely.
Where do you think JM is? Three years from now, what will the financial situation be?
Three years have passed. Many of the startups we’ve supported over the previous several years, I believe, will scale, and current businesses will grow stronger. We are aggressively investing in both people and technology across our businesses in order to take advantage of the multi-decade prospects in the areas in which we operate. Our businesses would change as a result of the usage of technology and digital technologies.