Ramesh Iyer, vice chairman and MD, Mahindra & Mahindra Financial said that widespread monsoon has been a good start for rural market adding that people are willing to hire tractors with additional benefits for farming.
“The signal that we get from our team across the country is very clearly that the sentiments are very positive,” he said.
“The overall project cost of tractor financing has gone up. So people are willing to invest in additional equipment. We are seeing increased quantum of lending to tractor plus additional equipments,” he added.
Speaking about farm mechanisation he mentioned that, “Currently the numbers are small because it has just started and some indications are that if the overall tractor is 10 percent then at least the mechanisation equipment should be 10 percent of that which means that whatever is the total tractor lending would be, 10 percent of that would initially be supported by the additional equipments that people are looking for.”
Iyer also added that around 90 percent plus sure is deep rural, about 5-10 percent one can put towards the semi-urbanish market.
"SME yields are not as high as retail yields and the cost of operation in SME book is at 0.5% vs 2.3-2.8% for retail book," he said.
Talking about private taxi operators, he mentioned that, " Private taxi operators have not added great number of vehicles in last one year, while Bangalore and Pune saw some pain in growth and repayments from private taxi operators."