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Shriram 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.
Last fiscal, it did a business of 25,000-crore in vehicle finance. It expects this to remain flat or a little higher in the current year, MD and CEO Umesh Revankar said.
As 85 per cent of its vehicle finance portfolio comprises large commercial vehicles, 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. 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) that opened on Wednesday.
