Construction and equipment financing company, Srei BNP Paribas, is looking to fund used construction equipment, a segment which is largely catered to by the unorganised sector.

In a growing economy, where the focus is on infrastructure, this segment offers tremendous scope for lending opportunities, said Mr D. K. Vyas, CEO, Srei BNP Paribas. ?This is an untapped area and, therefore, has huge potential,? he said. The non-banking finance company is a 50:50 joint-venture between Srei Infrastructure Finance and BNP Paribas.

While bulk of its lending is for infrastructure and construction equipment, it also provides finance for information technology, healthcare, agriculture and office equipment.

For the nine-month period ended December 31, 2010, total disbursements were at Rs 7,484 crore, a growth of 92 per cent from Rs 3,902 crore in the same period last year. Assets under management stood at Rs 10,337 crore, higher by 28 per cent from Rs 8,075 crore last year.

By end-March, total disbursements are likely to touch Rs 10,000 crore, which would be a growth of 70-80 per cent over last year. For 2011-12, the company is targeting disbursals of over Rs 20,000 crore.

As on January 31, 2011, total disbursements were to the tune of Rs 8,200 crore. The share of IT and medical equipment is currently about 10 per cent, or around Rs 820 crore. As there is incremental growth in these two asset classes, their share is likely to increase to around 20 per cent next fiscal, Mr Vyas said.

Though the net interest margin is currently at a healthy 4.87 per cent, it could be under pressure going ahead, due to rising borrowing costs, Mr Vyas said. ?Our borrowing costs will go up, but as we offer floating rate loans, it will be passed onto our customers,? he added.

Earlier this week, the NBFC raised its benchmark rate by 50 basis points, to 15.5 per cent.

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