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IndoStar Capital Finance has launched vehicle finance and affordable home loan products, which it says will be part of its key business segments.
The Mumbai-based company’s vehicle finance business will be headquartered in Chennai as the company believes it has a favourable business eco-system with the presence of automobile companies and truck financing institutions. “The office was opened today,” said R Sridhar, Executive Vice-Chairman & CEO, IndoStar Capital Finance.
It will focus on financing new and used commercial vehicles, passenger vehicles and some categories of two-wheelers.
In CVs, it intends to focus on mid-segment customers. Also, demand recovery in the CV segment is seen as a positive to grow the business.
The company will open five-six branches in Chennai and has chalked out plans to open about 50 branches across Tamil Nadu by next year. “Overall, our aim is to reach 15 States by 2018,” he added. In September, Indostar launched its housing finance arm, IndoStar Home Finance, headquartered in Mumbai, to focus on affordable and other home loan portfolios.
“The five businesses which we are going to do is corporate lending, vehicle finance, affordable home finance, SME lending and retail home loans,” said Sridhar.
Over the past six years, the company has been lending to corporates and SMEs. Of its asset book size of more than ₹5,000 crore, ₹4,000 crore has been lent to corporates and the rest to the retail business.
Over the last six years, the company has recorded 39 per cent CAGR in total assets and 52 per cent CAGR in total income, which was ₹720 crore in 2016-17. Its profit after tax was ₹211 crore in the previous fiscal.
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