News Tech: Over the past few quarters, non-banking financial companies (NBFCs) like Muthoot Finance and Manappuram Finance have suffered a reduction in their customer base as a result of customers switching to banks.
“That’s because the fourth and first quarters of this year both feature a significant number of auctions. Many of the accounts were marked away from the active accounts for that reason, he said.
George Alexander Muthoot, MD, Muthoot Finance acknowledged that banks are succeeding in attracting new clients as the market is expanding in an interview with CNBC-TV18. He added that while the overall client base has not decreased, the number of active customers has.
In an interview with CNBC-TV18 on August 22, Manappuram Finance’s MD and CEO, VP Nandakumar, stated that although demand for NBFC customers at the lower end has decreased, there has not been a migration of customers to banks and that they are also seeing new customer acquisition play out.
“In quarter one, we had degrowth of about 2 percent mainly because of auctions. In quarter two, you should see things stabilizing and in quarters three and four business should grow. We expect about 10 percent growth by the end of the year,” he explained.