The Hinduja Group is planning to launch a new non-banking finance company (NBFC), which would mainly cater to commercial vehicle finance. The company is in the process of getting license from the Reserve Bank of India (RBI)
Speaking to reporters today, K Sridharan, CFO, Ashok Leyland said that the company would be named Hinduja Leyland Finance and will be headed by S Nagarajan, who was earlier with IndusInd Bank as joint MD.
The capital would be shared between the group company and Ashok Leyland. He noted that the next financial year would be the right time to raise the money.
Sridharan said that currently one of the main reasons for the drop in the commercial vehicle sale is due to the non-availability of funds. He noted that 99 per cent of the commercial vehicles are bought through loan and it is an integral part of the commercial vehicle industry.
Currently, the banks and other financial institutions are showing reluctance for funding commercial vehicle buyers. The new company would fill this gap, said Sridharan.