Shriram City Union Finance posted a good set of Q1 earnings. In an interview to CNBC-TV18, YS Chakravarti, ED and COO of the company spoke about all the details on their earnings.
Tenure of the products are increasing, small and medium-sized enterprises (SME) loans have been increasing leading to increase in duration of loan book. All our loans are equated monthly installment (EMI) based except for the gold loan, he said.
Year-on-year (Y-o-Y) net interest income (NII) is at 18.9 percent and sequentially it has grown by 14.5 percent. We will be able to sustain the net interest margins (NIMs) there, he added.
Saw pick up in disbursements in July but not to the extent that we anticipated. Looks like there is still a lot of confusion from the small businessmen on the impact that goods and services tax (GST) is going to have on their businesses. So most of them have put their expansion plans on hold, said Chakravarti.
We are looking at 200-230 basis points (bps) incremental growth in the gross non-performing assets (NPAs), he said.
Gold disbursement had seen initial hiccup post Reserve Bank of India (RBI) regulation but we are back to normal since we have tied up with banks and we are able to transfer money into customers’ accounts through Immediate Payment Service (IMPS), he added.
On assets under management (AUM), the company expects to see 17-20 percent growth in FY18.
For full interview, watch accompanying video...
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