Healthy growth seen for Reliance Cap commercial fin biz:Investec

Considering healthy growth in the commercial finance sector, Reliance Capital might have to raise fresh capital once it hives off this business into a separate entity, feels Nidhesh Jain of Investec Capital Services.

He expects disbursements in commercial finance to grow by 15-18 percent this year.

In an interview to CNBC-TV18, Jain says the hive-off will also improve disclosures on the commercial finance business making it easier to analyse and value.

He is comfortable with Reliance Capital's distribution of asset under management and says the higher share of risky housing loans at 64 percent of home loan book is not worrisome as some peers have a much higher share in housing loans.  Transcript to follow...