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Final Document - Why convert to Bank - Low cost of funds...

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Why convert to Bank - Low cost of funds (substantiate with data) - Will be able to accept the savings and can have saving/current account in the bank. - Bank can cover all the functions of NBFC - There is a huge untapped potential in rural areas where the saving rates are very high. (substantiate with data) Disbursement accounted for utility vehicle and cars 90% of total disbursements. 1.3 % NPA of advances at end of June Quarter. 4.4 % Spread 76% growth in loan disbursement y-o-y What arguments will be used in favour of M&M? - The goodwill that M&M have in the country - They have never been a part of a dispute. - Have a major presence in rural India and is a known name in Rural India so it makes sense to pitch RBI as a rural Bank. - A strong marketing/sales team have a good knowledge about the rural market. Why not the housing finance model like HDFC possible in rural areas - The repayment capacity of people is highly dependent on monsoon and so the chances of default are high. -
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This note was uploaded on 10/08/2010 for the course BAB 1 taught by Professor Wwww during the Spring '10 term at IIPM.

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Final Document - Why convert to Bank - Low cost of funds...

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