Shriram Transport Finance Company today said it is witnessing a recovery in the loan demand for vehicle finance and expressed the hope that credit growth will return to normalcy in the next fiscal.
The loan growth for the company will slow down to 10-15 per cent level in the current fiscal but there is already a revival in demand to take it back to 25 per cent levels the next fiscal, Chairman Arun Duggal said here.
“We are beginning to see a revival of credit demand and expecting that next (fiscal) year would better than this year,” he said.
He said the largest vehicle financier in the country has consciously slowed down its business following economic slowdown “to preserve credit quality”.
A slew of lenders, including banks and specialised non-banking lenders like Shriram have been facing headwinds on the commercial vehicle portfolios due to economic gloom, along with halting of mining operations in various parts of the country. This has led many to diversify by shifting focus to other sectors, especially retail lending.
The Shriram Group firm has reported 19.43 per cent growth in consolidated net profit at Rs 375.49 crore for the three months to December.