"We are not even trying to look at banks. As of now, we are comfortable being NBFC and this way we are able to serve the customer base much better,” said Umesh Revankar, Vice Chairman and Managing Director at Shriram Transport Finance Company.
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Last week, the biggest corporate news was the merger announcement of HDFC with HDFC Bank. HDFC Chairman, Deepak Parekh said it didn't make sense for India's largest mortgage lender to remain as a non-banking financial company (NBFC) as the regulatory benefits of continuing as an NBFC are near absent now. He said that it makes sense for all large NBFCs to convert into banks. Umesh Revankar, Vice Chairman and Managing Director at Shriram Transport Finance Company discussed this.
HDFC Ltd has been serving mostly bankable customers so the merging of HDFC into HDFC Bank was quite easy. However, Shriram Transport Finance has been serving the under-banked and unbanked, which has been a niche segment for quite a long time. “So becoming a bank and then whether we will be able to serve the under-banked and unbanked is not very clear,” he said.
“We are not jumping into this and we are not even trying to look at banks. As of now, we are comfortable being NBFC and this way we are able to serve the customer base much better,” he added.
The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate unchanged in its first bi-monthly policy meeting of FY23, Governor Shaktikanta Das said on Friday. This is the 11th time in a row that the central bank has maintained a status quo on the key policy rate.
Sharing his views on the policy, Revankar said that the interest rates would go up b 30-40 basis points (bps) in the next couple of quarters. This will have an impact on the smaller segments. In that case, the revival may get postponed.
For the full interview, watch the accompanying video
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