Category: Interview

So part of what benefited us was that we’re risk-averse.

I have a saying: There are no brave old people in finance.

Because if you’re brave, you mostly get destroyed in your 30s and 40s.

If you make it to your 50s and 60s and you’re still prospering, you have a very good sense of how to avoid problems and when to be conservative or aggressive with your investments.

–said Blackstone Chairman, Steve Schwarzman

Source: Ajay Piramal’s interview

On NBFCs:

The next two to three years will be a golden period for NBFCs.

The Indian economy is growing at 7.5 to 8 per cent a year.

The financial space always grows 2.5 times to that of gross domestic product; so, the normal growth should be 20 per cent.

However, in the financial services space, the public sector has got 70 per cent share and is saddled with non-performing assets.

Also, some of the large private banks have large NPAs. Their attention is focused on solving that problem; it also means they do not have enough capital.

And, because of the past NPAs, their ability to take the risk to lend is reduced.

Hence, NBFCs will have a good run.

On RERA:

Because of it, I’m seeing that the marginal players are falling.

We only serve the top-tier customers. Those are the ones whose business will grow.

It is not that demand will come down, but 80 to 90 per cent of developers will have to shut down.

And the top 10 per cent will grow because they have to serve the market.