Country's largest commercial vehicle financing firm, Shriram Transport Finance Company (STFC), today said the RBI''s recent decision to remove priority sector status for bank loans to non-banking finance companies would not make much impact on the company.
"It (RBI''s move to remove priority sector status for bank loans to non-banking finance companies) will not have much impact on us," STFC Deputy Managing Director, Umesh Revankar, told PTI.
RBI in its recent credit policy excluded loans given to the NBFCs from the priority sector list.
The Central Bank said that bank loans to NBFCs, excluding microfinance institutions which are categorised as NBFC, would not be classified as priority sector loans.
"We have have been borrowing from banks on two counts--on balance-sheet and off balance-sheet. Our on balance-sheet status has been withdrawn for priority sector status," he said.
"As we are growing fast, we are always prepared for this kind of situation," Revankar said.
When asked on margins for FY 12, he said, "margins could be under pressure a little bit for this fiscal but would not be very significant." .
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