The Hindu Business Line : Shrachi Securities in pact with HDFC Bank

SHRACHI Securities Ltd (SSL) has tied up with HDFC Bank for financing multi-utility vehicles. Announcing this on Friday, Mr Ravi Todi, MD, said the company's business with HDFC Bank stood at Rs 40 crore for the three-month ending June 2004. SSL has targeted a business of over Rs 100 crores with the bank.

Mr Todi also said the company has procured international funds from the Netherlands-based institution, FMO. This took the form of a five-year loan. Two other lines of credit, both from international lenders, are likely to be utilised as well. Their disbursement is, however, pending because of regulatory restrictions on such disbursements. The two institutions are BIO of Belgium and Tridos Bank of the Netherlands.

SSL had provided a consistent performance last year, Mr Todi told newspersons, adding that competition in the financial services industry was quite steep. In 2003-04, the company's disbursements on account of hire purchase and leasing of commercial vehicles and two-wheelers stood at Rs 50 crore (compared to Rs 29 crore last year) - a growth of 72 per cent over last year. The total business outstanding (net) was Rs 76.79 crore as on March 31, 2004.

SSL already has a tie-up with Citicorp Finance for various financing options. Disbursement by the Shrachi-Citi tie-up stood at Rs 233 crore compared to Rs 120 crore in FY 2002-03. The combine has targeted a disbursement of Rs 546 crore for CVs & three wheelers and another Rs 40 crore for its construction equipment division.

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