SMEs remain high on potential, have good absorption capacity: Senthil Kumar

Overall, our NPAs are at 2.6 per cent in the vehicle finance book, which is relatively low. We are not observing any pressure, says executive vice-president of Manappuram Finance

Senthil Kumar, executive vice-president of Manappuram Finance, tells Advait Rao Palepu that despite a rise in borrowing costs, the company has not faced the asset-liability management (ALM) issues that other non-bank financiers have faced in recent months. However, he says, if financiers face higher borrowing costs in the coming months, it will be detrimental for retail lending and consumption. Edited excerpts:

Has the present liquidity and ALM situation affected Mannapuram Finance?
 

I understand our cost of funds has gone up a bit over the last one year. However, we do not face any pressure on the ALM side. A large part