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Raising money should become cheaper after January: Shriram Transport MD

"As far as cost is concerned, I think there is no further moment upwards," the company's managing director Umesh Revankar said.

December 06, 2018 / 05:16 PM IST

Umesh Revankar, Managing Director of Shriram Transport Finance Corporation, spoke to CNBC-TV18 about the company's business plans and growth prospects.

"As far as cost is concerned, I think there is no further moment upwards. It has remained constant for nearly a month and availability is definitely better, banks are definitely looking into the proposals and we did raise some money in the last one month so business is as usual for us. Only the increased cost – we are able to pass it on to the customer right now," said Revankar on December 6.

Talking about money raising, Revankar said, "Post January, I believe it (next money raising) should become cheaper. In the month of December, probably it will remain at present level. But last quarter, availability also would be much better and cost also could come down by 20-30 basis points (bps)."

"Post Diwali, normally you have a lull period for 10-15 days. Every year it happens naturally and the demand gets picked up in the month of December because the manufacturers give special discount to push the models, which is produced in the year. November fall is almost certain every year. So I don’t attribute much towards that," said Revankar.

With regards to the asset quality, Revankar said, "Asset quality is linked with the economic condition, not with the supply of liquidity because when the banks and non-banking financial companies (NBFCs) become cautious, automatically the credit quality will improve so it should not deteriorate. Overall we had indicated 18-20 percent assets under management (AUM) growth for the year. We are hopeful of reaching that. I do expect that Q4 should be very good."

Source: CNBC-TV18
first published: Dec 6, 2018 10:48 am
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