Expect assets under management growth of 15% in FY18: Shriram Transport

Shriram Transport Finance Corporation saw a steady Q2 as disbursement came in at the highest level in the last six quarters while margins remained stable.

In an interview to CNBC-TV18, Umesh Revankar, MD of Shriram Transport Finance Corporation spoke about the results and his outlook for the company.

Revankar said rural market has been strong for two years due to good monsoon. Two years of bumper kharif output augurs well for rural market, he added.

According to him, non banking financial companies (NBFCs) have expertise and advantage over banks.

On AUM growth front, he said asset under management growth is around 13 percent year-on-year (YoY). He expects assets under management growth of 15 percent in FY18.

Talking about margins, he said net interest margins (NIMs) should remain at current levels of 7.5 percent.

He further said that FY19 onwards he expects return on equity (RoE) of 18 percent in next two years.

We do not have any plans of raising capital in the next two years, said Revankar.

Watch accompanying video for more details.