Talking about the IDFC deal he said the discussions are going on and it would likely get finalised in few weeks. He said, if the deal goes through it will be good for the community and the shareholders. So all efforts are being taken to move forward. The outcome from the deal with regards to Shriram Transport Finance will be decided in the interest of the shareholders.
"The shareholders long-term wealth is something which will drive our decision with regards to IDFC," said Thyagarajan.
Talking about the turn seen in the CV business, he said the commercial vehicle segment is a part of infrastructure and therefore growth, prosperity of the segment depends on how the economy is going to perform in the coming months and years. The CV industry growth will be in-line with economic growth.
With regards to the transport finance business, he said, it has been observed over the last 30-35 years that the volatility of the business has been minimal.
He said although the cost of funds have come down at an accelerated pace and is positive for the CV customers, money becoming cheap will not lead to them lending aggressively.
However, cheaper short-term money could lead to better performance in Shriram Transport, he said.
With regards to goods and services tax (GST), he does not see stress for truck operators due to its implementation.
He is very happy about the performance of the insurance businesse. According to him, it will be remain the most profitable Life and General Insurance company in India. They are currently booking more profits than peers, he said.For the full conversation, watch video