Banking and financing are going to meet the same fate as telecom

Banking and financing are going to meet the same fate as telecom24 Feb 2020: With the presentation of LPG, the Indian economy opened up. Free business sectors began besieging Indian GDP development rates. Take the case of the telecom segment, the section of different players brought about a decrease of duties prompting expanded telecom infiltration. Today, India is having more than one billion endorsers, second just to China. It has also been at the forefront of mobile evolution, with the customer being the biggest winner.

There is a threat or we can say the potential risk of diminishing competition in the telecom sector, with two or three players left. Call duties have gone up 20-half and more climbs are normal with rising monopolistic inclinations which implies that the client will be the greatest failure.

The telecom story can act as a forerunner for sectors like banking and financial services because in the near future there are high chances that they will face the same fate. The total assets of public sector banks have declined from 78% to 61% and deposits have dropped from 76% to 66%. PSB’s are currently more centered around incorporation issues after their number being merged to 12.

Banks weren’t able to fulfill business requirements, that’s when the NBFC’s came into existence. On one hand, wholesale NBFCs provided financing against equity, land etc.and on the other hand retail NBFCs provided last-mile financing to the unbanked segment.

NBFCs played a major role in fulfilling the credit needs of a segment that didn’t have access to formal finance, for that they adopted technology and started building alternate credit evaluation techniques.

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