“We feel optimistic that things will pick up,” said Rajiv Lochan, Managing Director of Sundaram Finance, in an interview with CNBC-TV18.
“We feel quarter-on-quarter we will see a return to some sense of normalcy given that we have been through a once-in-a-century kind of an event,” he added.
"Q2FY22 has given an optimistic encouragement for us to see the pullback that we have expected and we are hoping in the next few quarters to continue the same pullback that we have done,” he said.
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Sundaram Finance’s collections through Q2FY22 exceeded its disbursements, he noted.
All the restructuring done by the bank has been targeted at COVID-impacted sectors largely in the education segment, school-bus operators, travel and tourism-related segments – bus segment has been the big one. The small road transport operators in the M&HCV segment has been another segment where the bank has targeted its restructuring efforts.
“On an overall basis, we have restructured about 7 percent of our portfolio,” he said.
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Reduction in excise duty on petrol and diesel is a substantial relief for Sundaram Finance’s customers.
“The commercial vehicle (CV) segment is slowly getting back to a sense of normalcy. The recent Diwali gift in terms of diesel price reduction improves the viability of our core customers quite substantially. This relief is quite a substantial relief for our customers,” he explained.
For the full interview, watch the accompanying video.
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