economy is growing very healthy, STFC could grow beyond 15 per cent over the two -three years
Going forward, do you see the NPA problem subsiding for the NBFC industry as a whole?
Earlier, the NPA recognition for NBFCS stood at 180 days. As the entire industry must move to 90 days by FY18, we have well equipped ourselves to manage the same. The whole process will aid in making the customers more disciplined, leading to reduction in delinquencies over the period.
How is pre-owned CV segment performing for STFC? What are the major issues faced by STFC in pre-owned CV market?
Commercial and passenger vehicle industry witnessed strong recovery in FY2015-16 due to replacement demand. The CV industry continued the momentum in FY17 as well. However, after witnessing healthy growth of 13 per cent in Q1, M&HCV truck underwent sudden contraction period, resulting in the growth momentum taking a break. The key factors for the same were decreasing replacement demand, impact of demonetisation and the uncertainty related to the impact of GST on vehicle prices and the expectation on the prices to decrease post the implementation of GST.
Post the GST and BS-IV implementation, long term certainty will set in the overall business environment that would result long-term positive credit demand.