We would stick to the overall loan growth guidance of 18-20 for this financial year, said V Lakshmi Narasimhan, ED and Head-Investor Relations, Shriram City Union.
The growth has come from SME, two-wheeler and personal loan segment, however, the company hasn’t seen growth in the gold segment.
“In personal loan we will have a disproportionate loan than last year, two-wheeler will grow by 20-23 percent mapping the industry growth and SME growth will also be better than last year,” he said.
When asked if margins would come under pressure since the wholesale money has become expensive, he said they are looking at 20-25 basis points increase in cost of funds for FY19.
“We ended last year at a gross yield of 20.1 percent with cost of fund of 8.9 percent and we have guided for an overall drop in margins anywhere between 50-60 basis points for this financial year,” he said, adding that gross yields would be around 19.5-19.6 percent.
Talking about the subdued demand for gold loan, he said it is because of two things. One is regulatory changes and two, preference for personal loans.
However, the company is looking strategically at growing gold loan business in the states they operate the business in, he said.