India's largest commercial vehicle financier Shriram Transport sees 73% loan repayments in August
Total assets under management (AUM) as on June 30 stood at Rs 1.12 lakh crore as compared with Rs 1.06 lakh crore a year ago
- Sep 4, 2020,
- Updated Sep 4, 2020 1:23 PM IST
Shriram Transport Finance Company Ltd (STFCL), India's largest commercial vehicle financier, has witnessed a remarkable recovery in loan repayments since lockdown, and expects 90 per cent of its customers to make full or part payments in September. Umesh Revankar, CEO & MD, STFCL told BusinessToday.In that just 24 per cent of the customers had been able to make payment in April, the first full month of lockdown.
"In May, 51 per cent of our customers made full or part payments. It increased to 71 per cent in June, while it remained almost flat in July and August. About 73 per cent customers made payments in August," Revankar said. STFCL expects September to be good because it is the first month without loan moratorium. "Since there is no moratorium, the collection has to be really good. In addition, most of the locations under lockdown have been opened up. The containment zones are the problem areas," said Revankar.
"By and large we have provided for the total likely impact of COVID-19 in the last two quarters results. We expect Q3 and Q4 performance and results to be good," he said. STFCL reported nearly 50 per cent drop in consolidated net profit at Rs 320.06 crore in the first quarter ended June. However, total income of the non-banking finance company (NBFC) increased to Rs 4,144.70 crore from Rs 4,031.18 crore. Total assets under management (AUM) as on June 30 stood at Rs 1.12 lakh crore as compared with Rs 1.06 lakh crore a year ago.
Shriram Transport Finance Company Ltd (STFCL), India's largest commercial vehicle financier, has witnessed a remarkable recovery in loan repayments since lockdown, and expects 90 per cent of its customers to make full or part payments in September. Umesh Revankar, CEO & MD, STFCL told BusinessToday.In that just 24 per cent of the customers had been able to make payment in April, the first full month of lockdown.
"In May, 51 per cent of our customers made full or part payments. It increased to 71 per cent in June, while it remained almost flat in July and August. About 73 per cent customers made payments in August," Revankar said. STFCL expects September to be good because it is the first month without loan moratorium. "Since there is no moratorium, the collection has to be really good. In addition, most of the locations under lockdown have been opened up. The containment zones are the problem areas," said Revankar.
"By and large we have provided for the total likely impact of COVID-19 in the last two quarters results. We expect Q3 and Q4 performance and results to be good," he said. STFCL reported nearly 50 per cent drop in consolidated net profit at Rs 320.06 crore in the first quarter ended June. However, total income of the non-banking finance company (NBFC) increased to Rs 4,144.70 crore from Rs 4,031.18 crore. Total assets under management (AUM) as on June 30 stood at Rs 1.12 lakh crore as compared with Rs 1.06 lakh crore a year ago.