Arohan self-imposes a margin cap of 12%, to restrict annual business growth at 25%
Arohan Financial Services has decided to put a self-imposed margin cap of 12% over its cost of funds and restrict annual business growth to 25%.
Budget with ET
Budget 2025: A CFO’s playbook for operational excellence and long-term growth
Rising Bharat may need to take center stage for India’s game-changing plans
Will Indian Railways accelerate to global standards with govt’s budgetary allocation?
Arohan, with three other lenders serving the lower-income group customers, was on October 17, 2024 barred from lending for charging excessive interest spreads over costs of funds and for gaps in household income assessment of borrowers resulting in overlending among other issues.
RBI removed the restriction on Arohan in the first week of January.
«Our board took a very positive approach in guiding the management and used this (situation) to introduce a first in the sector, a self-imposed margin cap of 12% over the cost of funds and also a max 25% growth guidance for any business year,» Arohan managing director Manoj Kumar Nambiar said in the company's latest quarterly newsletter.
It may be recalled that before the removal of lending rate cap by the regulator in 2022, bigger NBFC-MFIs were following a 10% margin cap norm.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrows Innovations
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Genera
