Homefinance News

    Plan to complete Brookfield transaction soon; aim to scale up used vehicle lending biz, says Indostar Capital

    finance | IST

    Plan to complete Brookfield transaction soon; aim to scale up used vehicle lending biz, says Indostar Capital

    Mini

    Brookfield has signed binding agreement to infuse Rs 1,225 crore into Indostar. So, we are focusing on concluding that transaction at the earliest, said R Sridhar, executive VC and CEO of Indostar Capital Finance.

    Sequentially, it was a very weak third quarter across parameters for Indostar Capital Finance. Disbursals remained on the lower side for second quarter in the row, while assets under management declined.
    R Sridhar, executive VC and CEO of the company said post the IL&FS crisis, NBFCs have faced major liquidity stress. "The last fifteen months has been a challenging period but we have been able to manage through many of our strategies. Liquidity has improved substantially now, we have received a lot of money in January; on the Partial Credit Guarantee scheme we have received about Rs 500 crore, term loans have started coming,” he added.
    On the vehicle financing business, he said “In commercial vehicle (CV) financing, we are neither at the bottom of the pyramid nor at the top end of the spectrum. We are focusing more on used vehicles. So, our portfolio consists of two-thirds of used and one-third of new vehicle finance, which gives us a blended yield of over 16.5 percent." Going forward, the potential to scale up this business is quite large because except three large companies, there are no NBFCs in CV financing space, he said in an interview with CNBC-TV18.
    Moreover, with the scrappage policy likely to come by March 31, 2020 – the next three-five years there could be lot of scope for lending to used vehicles. In the used vehicle space, we have positioned our company at a very strategic level. "I am also confident that with the capital coming in, we can look at scaling up this business very high,” said Sridhar.
    Meanwhile, “Brookfield has signed binding agreement to infuse Rs 1,225 crore into Indostar. So, we are focusing on concluding that transaction at the earliest,” he said.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    next story

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng