Expect growth to pick up in Q3: Manappuram General Finance

He said that the company’s loan book de-grew by nearly Rs 600 crore in the last quarter on the back of new loan-to-value norms. Its current order book is at nearly Rs 10,738 crore.

However, Unnikrishnan is hopeful of growth picking up in the third quarter. "Starting this quarter we may not see de-growth in the loan book. Starting Q3 of this year we should be growing by around 10% annualized," he elaborated.

Below is the edited transcript of Unnikrishnan’s interview with CNBC-TV18.

Q: How your core business is doing because your sequential decline in assets under management is not very significant compared to what was happening last quarter with the new LTV (loan-to-value) norms?

A: Our loan book has de-grown by nearly Rs 600 crore. Currently, our loan book is around Rs 10,738 crore.

Q: Is the pace of decline or shrinking of the book coming down now as you seem to be adjusting with the LTV norms?

A: Starting this quarter we may not see de-growth in the loan book and starting Q3 of this year we should be growing by around 10% annualized.

Q: You are on course to the realignment to 60% LTV and you are saying that in the current quarter the effect of that would have played out fully?

A: In Q1 it has played out fully and Q2 is flat and starting Q3 we should be growing at 10% per annum.

Q: Do you expect to keep spreads above 14%?

A: The spread may come down slightly, may be by 1% or so over the next one year period, but it will be around 24% and spread will be around 12%.