Comments
Sundaram Finance Ltd, a leading non-banking finance company, expects modest growth this year in the commercial vehicles and car segments — a reflection of the overall slowdown in the automotive sector.
The company, however, expects increased growth in the tractor and LCV segments, especially in the sub-one tonne segment.
According to a company press release, Mr S. Viji, Chairman, Sundaram Finance Ltd, told shareholders at the 58th AGM of the company that the increase in vehicle and diesel prices, higher interest rates and slowing IIP growth do not bode well for the road transport sector.
He said this was likely to have a significant impact on the overall commercial vehicle sales, especially in the M&HCV segment.
On the focus areas for the year, Mr T.T. Srinivasaraghavan, Managing Director, Sundaram Finance Ltd, said: “While overall disbursements are expected to register only a modest growth, we are confident of maintaining profitability through our focus on superior asset quality, efficient cost management and an optimum product mix that includes increased focus on LCVs, the equipment and tractor financing segment.’’
Sundaram Finance's disbursements grew 28 per cent to Rs 7,478 crore in the last fiscal. The company reported a profit of Rs 295 crore during the period.
Reiterating the contribution of the NBFC sector, Mr Viji urged the RBI to take into account the heterogeneity of the NBFC sector and the vital contribution of Asset Financing NBFCs in fostering financial inclusion, while framing new guidelines for the sector.
He expressed concern at the long pending demand for differential risk weights for different classes of assets, based on their risk categorisation. “Asset Financing NBFCs have consistently demonstrated their ability to manage retail portfolios with low levels of credit losses and it is only fair that this be duly recognised by RBI.”
The shareholders approved the final dividend of Rs 7 per share.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.