Shriram City Union Finance Limited - Karvy

NBFCs in the Indian gold loans marketSource: Gold Loans Market in India 2010 - IMaCS Research and AnalyticsIn addition, it is anticipated that the large public sector banks in southern India will continue to be amongst theleading lenders, but considering the various regulatory and operational processes, it would be challenging for thebanks to match the flexible service regime of the specialised NBFCs (Source: Gold Loans Market in India 2010 -IMaCS Research and Analytics).New NBFC entrants in the market are currently in a cautious preparatory mode to enter the Gold Loans market but itwill take some time for these NBFCs to emerge as formidable competitors to specialized existing NBFCs. [Source:Gold Loans Market in India 2010 - IMaCS Research and Analytics]This is because it will take time for these new NBFCs to build the requisite focus, infrastructure (valuers, lockers,etc,) and branch network (Source: IMaCS Industry Report 2009). Specialized NBFCs are expected to continue tohold their share of the Gold Loans market with their ability to provide superior and niche servicing capabilities totheir existing and future customers. The following factors will be crucial in contributing to the continued growth ofspecialized NBFCs:• ability to maintain their strong hold in the southern India markets in terms of reach and customer services;• strengthening brand image in the target customer segments with a special emphasis on markets beyond thesouthern region in India;• developing related products such as education loans and offering fee based services such as moneytransfers or financial products distribution; and• capturing a strong market position in other regions of India, including in the northern and western regionsSource: Gold Loans Market in India 2010 - IMaCS Research and Analytics81