Low operating expense, high yields to help NBFCs' grow their rural books

Bajaj Finance Limited increased their urban outlet network by 40.3% to 529 stores at the end of December 2017

Some of the top rural-focused non-banking financial companies (NBFCs) have each grown their branch and sales network significantly over the past two years. Having specifically built innovative and low-cost business models that are driven by a technology platform and low operating expenses, analysts say the room for growth is wide-open. 

Table-I illustrates how NBFCs have grown to reach out to consumers Tier-III (plus) towns and villages over the past three years. For example, based on financial reports and presentations, Shriram Transport Finance Company (STFC) has increased the number of rural centres by 8.9 per cent to 930 at the end