Umesh Re­vankar

Dalal Street Investment Journal - - COVER STORY -

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.

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