The Hindu Business Line : 'Lack of bank finance affecting PC sales'

THE reluctance of banks and finance companies to provide credit for buying computers is a major hurdle affecting PC sales in the country, according to Mr Ajai Chowdhry, Chairman and CEO of HCL Infosystems Ltd.

"Most of the banks are financing only homes and automobiles. They are not interested in financing PCs," Mr Chowdhry said.

Absence of cheaper credit was particularly affecting sales of PCs in smaller cities where PC penetration was lower, he told Business Line.

HCL Infosystems was in talks with several banks to provide financial assistance to buyers of PCs, Mr Chowdhry said. It has already tied up with one finance company. "There is a great opportunity for banks in financing computer purchases," he added.

Typically, home PCs are bought for children and no parent would default on repaying the loan, lest it should lead to discontinuation of the child's computer education. "It is a such a safe bet for the banks."

Despite this impediment, PC sales in the country are growing at a phenomenal pace, helping companies such as HCL Infosystems boost revenues.

The company saw revenues from PC sales surge to Rs 1,132.4 crore in the nine months ended March 31 as compared to Rs 799 crore in the same period last year.

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