The rate sensitive auto sector has been one of the most battered down in the near-crisis situation of the financial market. Speaking to CNBC-TV18, Sanjay Chamria, VC and MD of Magma Fincorp reveals that they do see shrinkage in demand for auto sector loans on a macro-level.
V Lakshmi Narasimhan, CFO of Magma Fincorp, in an interview with CNBC-TV18’s Sonia Shenoy and Latha Venkatesh, said that the company intends to grow its loan disbursement by 50% in FY12. He also stated, "This year, we target to keep the net interest margins (NIMs) between 5-5.25%."
While there are no signs of the boom ending in the auto loan space, questions are arising as to when the higher cost of lending will start to play catch up. Sanjay Chamria, VC & MD of Magma Fincorp Ltd in an interview on CNBC-TV18 said the cost of borrowings has been going up right from August-September onwards.