Business Today

On a Golden Streak

For large gold loan NBFCs, business model revamp paves the path out of a slump.

Profitability of large gold loan non banking finance companies (NBFCs) rebounded to peak levels seen before the regulatory tightening began in 2012 and eroded returns. FY2016/17 saw their return on assets zoom to over 4 per cent from around 2.5 per cent in FY2013/14.

The improvement started as large NBFCs made two changes to their business model

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