NBFCs expect revival of construction equipment, CVs sectors

With the new government taking charge at the Centre, financial institutions can expect revival of construction equipment and commercial vehicle sectors, which had gone through a difficult period for the last two years, a top official of L&T Finance Ltd said today.
These sectors were experiencing about 30 per cent minus growth for the last two years and L&T Finance would consider a 'wait and watch policy' for revival of the industry since a new government would be in place, Company's MD & CEO Dinanath Dubhashi told reporters here.
Stating that the company has been growing consistently at 40 per cent for the last five years with a strong countrywide base, he said the uniqueness lay in the fact that it was one of the few companies that has multiple presence across various sectors, including rural infrastructure and micro finance.

The company's lending book was Rs 40,000 crore, with retail and mid-corporate portfolio standing at Rs 22,000 crore and infrastructure at Rs 18,000 crore, he said, adding that tractor credit contributed to 20 per cent of the total portfolio, with a Compounded Annual Growth Rate at 30 percent.
Though the company has a 25 per cent market share in two wheelers credit, the share in the car segment was very meagre at 1.5 per cent, Dubashi, who was here to inaugurate the 16th branch in Tamil Nadu, said.
Asked about foraying into SME sector, he said the company was laying greater focus on the sector, particularly auto anciallary units and also Coimbatore, being a hub for SME sector.