Annual Report 2012-13 - India Infoline Finance Limited
Annual Report 2012-13 - India Infoline Finance Limited
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>