Shriram Transport Finance Company withdraws guarantee for subsidiary's NCDs

Many of SVL's subsidiaries and the company itself had defaulted on loans now classified as non-performing assets

Shriram Transport Finance Company (STFC), in an exchange filing, has terminated its corporate guarantee for non-convertible debentures (NCDs) issued by its subsidiary Shriram Ventures.

The NCDs were issued in June last year and have a face value of Rs6.5 billion.  

“The contingent liability of STFC with respect to redemption/maturity of the said NCDs stands terminated,” said the exchange filing. These NCDs will mature in June 2019. 

Umesh Revankar, managing director and chief executive officer, STFC, said last month that SVL was trying to address the issue of default on NCDs on its own. If the guarantee is invoked, it will be borne by