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Annual Report 2012-13 - India Infoline Finance Limited

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Chairman’s Message<br />

It gives me immense pleasure to<br />

<br />

taking over as Chairman of <strong>India</strong><br />

<strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>. During the<br />

<br />

economy faced more than its fair<br />

share of macroeconomic challenges.<br />

Although the economy grew at<br />

5% (as per the Central Statistical<br />

Organization), depreciating Rupee<br />

<br />

<br />

<strong>India</strong>n economy.<br />

During the year under review,<br />

<br />

acceptable levels, but remained<br />

on the higher side. The <strong>India</strong>n<br />

Rupee depreciated sharply due<br />

to an increasing current account<br />

<br />

<br />

part of the year and RBI responded<br />

by cutting interest rates. Looking<br />

forward, we are optimistic about<br />

the <strong>India</strong>n economy and feel that<br />

the worst is behind us. In the new<br />

<br />

signs of abating and we expect<br />

the softening of interest rates to<br />

commence in the second half.<br />

The role played by NBFCs in<br />

<br />

customers, otherwise excluded<br />

by the banking channels, has<br />

been well acknowledged. Multiple<br />

committees including the Thorat<br />

Committee, FSLRC and the K.U.B.<br />

Rao Committee were set up by<br />

RBI and Ministry of <strong>Finance</strong> to<br />

study NBFC issues and concerns<br />

<br />

regulation. There is a focus on<br />

augmenting regulatory provisions<br />

governing NBFCs, the guiding<br />

principle being that of bringing the<br />

regulatory framework applicable to<br />

NBFCs at par with that of banks over<br />

a transition period. It remains to be<br />

<br />

form and whether attempts are made<br />

to extend to NBFCs few relaxations<br />

currently available to banks.<br />

The recommendations from these<br />

committees are aimed towards a<br />

tightening of operations; we believe<br />

<br />

for the industry in the long-term.<br />

An example is the prudential norm<br />

amended by RBI in <strong>2012</strong> specifying<br />

the Loan to Value limit to 60% for<br />

<br />

industry at large when gold prices<br />

corrected sharply in April 20<strong>13</strong>. We<br />

are concentrated on the retail side<br />

of gold loans and focused primarily<br />

on collections and risk monitoring,<br />

2<br />

| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>

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