you let us know the growth rates you have witnessed in each of these individual segments?
We witnessed strong growth in our SME loans segment in FY17, while mortgages grew at ~42 per cent.
The outlook fore various segments are as follows:
SME Loans – Riding on the favourable macro environmental conditions and in-house digitisation initiatives – SME lending at IIFL is poised for exponential growth. Recent government reforms will further aid the lending industry:
• Due to demonetisation, adoption of the digital payment system has shown significant improvement by MSMES, which opens up lending opportunity.
• Implementation of GST bill is expected to benefit MSMES not only with simpler tax structure but also with aspects such as improved technology adoption in order to comply with GST system and provide lender access to the transaction data through GST portal.
SME loans aim at digitising the processes to ensure seamless processing of files with minimum manual intervention and meeting the customers’ financial requirements. 100 per cent of the retail MSME loans will be sourced digitally, ensuring faster delivery.
Housing Finance – The market potential of affordable housing projects in the
company, IIFL is making all the right moves in the wealth management business and is now focusing on building its credit businesses. IIFL & Edelweiss have a healthy product mix and have diversified income streams.
The beauty of investing in NBFC sector is that you will invest in businesses with unique business models operating in country is expected to touch ₹6.25 trillion by 2022 (source – ICRA) due to demand emanating from a growing population and the disparity that exists in household income and high real estate prices. In addition, the government has provided various incentives to home buyers, targeted at the affordable housing segment, which is expected to further augment the demand.
How is digitisation shaping your strategy? What is your annual digital spend?
• We are focussed on implementing end-to-end digitised products and processes. We have been able to enhance our processes and improve our services based on the digital initiatives across all products and customer life cycle.
• We are now digitally on-boarding customers through web and Tabbased services across all our products. Backed by EKYC, esign and robust real time appraisal process, we are now able to disburse loan in seamless and almost paperless manner. With ENACH being implemented, we are geared up to disburse our loans in completely digital and paperless mode.
• We continue to invest disproportionately in building our digital platforms and capabilities. As regards marketing spend, our conscious aim is to spend on both online and offline platforms, as appropriate.
high yield, high growth, high margin businesses which are also agile. Agile structures and set-ups of most of the NBFCS allows these companies to quickly spot growth opportunities in new related areas. You may well be buying a different NBFC stock for an altogether different reason. The IT infrastructure is in place for most of the players and the technology is