Gold Finance NBFCs - Disruption Inevitable, But Long Term Story Intact: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Indian households hold a mammoth 14% share of global gold at 27,000 tonnes, only ~20% of which is pledged. The unorganised sector holds a grip on the chunk 65%, with organised players like banks and non-banking financial companies toying with the remaining 35% share. In value terms, India’s share translates into Rs 130 trillion (Rs 85 trillion jewellery share), which at 75% loan-to-value, presents a potential Rs 63 trillion market opportunity; currently, the organised market operates at mere ~ Rs 6 trillion. Specialised gold finance NBFCs like Muthoot Finance Ltd., and Manappuram Finance Ltd. are the undisputed leaders in India’s gold financing business since last ~15 years, but the two now find themselves in the eye of a storm, as banks/ fintechs and other NBFCs like IIFL Finance Ltd. have turned aggressive in the space. What attracts this large spectrum of organised financial players into the arena is safety from an asset quality perspective and the huge untapped potential. Their sudden attention to gold financing could disrupt the market near term, especially for the two specialised players. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gold Finance NBFCs - Disruption Inevitable, But Long Term Story Intact: Systematix

Specialised gold finance NBFCs like Muthoot, Manappuram Finance are the undisputed leaders in India’s gold financing business.

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