Sriram Transport Finance expects demand growth in second half

Demand to pick up on the back of a spurt in infrastructure and mining activity

Sriram Transport Finance Company Limited today said the demand for vehicle finance would pick up in the second half of the current financial year on the back of a spurt in infrastructure and mining activity.

During the last financial year the company had made Rs 25,000-crore business in vehicle finance. It expects the business to remain flat or a little higher in the current year, according to company managing director and CEO Umesh Revankar.

As 85% of the vehicle finance portfolio of the company comprises of large commercial vehicles, the increased activity anticipated in mining, coal transport is expected to create more demand for vehicle finance in the second half of the year, he said.

On an average Sriram Finance lends around Rs 2,000 crore a month on vehicle financing. The company is planning to raise Rs 1,500 crore to fund the business through the public issue of secured redeemable non-convertible debentures (NCDs) opened on Wednesday.