Five Star Business Finance CEO Rangarajan Krishnan describes the company's financial turnaround and sustained risk-averse profitability since 2005.
Insight
Exact cash-flow precision is unnecessary if debt-burden margins are safe
“You are really not worried or, you know, it's not that important to exactly pinpoint with Six Sigma accuracy on what is this cash flow? Is it 25,000 or 26,330 thousand rupees? You know, it doesn't matter. You have to be in the ballpark because then you have en…”
Insight
Borrowers prioritize repaying home loans over consumer goods in downturns
“Anybody who takes a loan has an intention to repay the loan. That intention stays good as long as the times are good. But everybody goes through good and bad times. I think when the times are bad, the same person behaves very differently for different products…”
Prediction Not checkable as stated
Krishnan: Fintechs focus on large cities and will take long to penetrate deeper
“I think fintechs are more focusing on larger cities and tiers and still take a lot of time to penetrate deeper.”
Insight
Lenders only realize their profit in the final EMIs of a loan
“The lender makes his monies only in the last few EMIs. If you have, let's say, a 60 month loan, the first 55 months, if he repays well, you don't make monies. You know, you're getting your principal back, you're, you know, repaying your borrowed monies, you're…”
Insight
Being a startup founder is overly glamorized due to survivorship bias
“I honestly believe that at some level today there is being a founder is too glamorous. I'm not sure if it's good for all. It's good for some, but we see more success stories than multiple failure stories.”
Insight
Preparing for an IPO takes two years, not six months
“You know, one of the common questions that get asked in an IPO is how much time does it take to do an IPO? And the most common answer that you might hear is that it takes anywhere between six to nine months. I think the answer is wrong. It really depends on wh…”