Commitment to a non banking model does give one clarity to operate in the high risk high margin segments that are exclusively revenues accretive to a NBFC. Apart from the big bang in MFIs in the unregulated market earlier, NBFCs may also proceed to have fun in the millions of card accounts attrited in the 2008 restructuring at banks
JM Financials for example , has bought HSBC’s credit card portfolio for its bad assets..and if you are one of the unfortunate ones without income, you may yet get new calling agents to break the rules as the bad assets business is very cash driven and thus highly accretive for exactly the wrong kind if not understood carefully.
You could have bought these assets from the bank for 20-30% of their value and the bank could have recovered most of its debt by continuing posting 50% interest charges in defaulted accounts, the low revenue to the bank from the sale being more than profitable to recover the lost retail banking win. HSBC already broke even last year in 2011 March in retail operations and has restarted unsecured lendingI
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