Date:01/03/2006 URL: http://www.thehindubusinessline.com/2006/03/01/stories/2006030102250900.htm

Back NBFC granted audience

One of the senior officials in a non-banking finance company remarked recently that for the first-time the Finance Minister granted an audience to the NBFC sector. This meeting seems to have had the desired effect. The service tax on lease and hire-purchase transactions has been rationalised and will not be applicable up to 90 per cent of the amount paid as instalments.

Non-banks financing acquisitions of assets are now in the midst of a great run with both volumes and margins increasing. They have also attracted institutional investment, and recognition from the policy makers, however minor, is a welcome change for the industry.

BL Research Bureau