Buoyed by a strong growth in demand for trucks and commercial vehicles, Shriram Transport Finance Company (STFC) is eyeing disbursals of over Rs 21,000 crore which will help it maintain a 20 per cent growth this fiscal, a top company official has said.
"We expect a strong growth in the used and new vehicle loans this year (FY 12) as many infrastructure projects have been lined-up. Besides, the festival season will also boost demand for vehicles," Shriram Transport Deputy Managing Director Umesh Revankar told PTI here.
The non-banking finance company (NBFC) is also targeting financing around 5 lakh new and used vehicles in the current fiscal as against 4 lakh in the last (FY11), when its disbursals stood at around Rs 18,000 crore, he said.
STFC is the vehicle finance arm of the Shriram Group and funds purchase of mostly second-hand trucks by small truck owners.
"We are very optimistic about long-term growth and expect to maintain a 20 per cent growth in FY12. The demand for commercial vehicles will continue to remain robust in the coming days," he said.
New vehicle financing will comprise about 30 per cent of the firm's total loan portfolio, while used vehicles financing will make up the balance, Revankar said.
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STFC has received a good response from its auto mall in Chennai launched last month and plans to set-up three more outlets in Vadodara, Gurgaon and Mumbai by July, he said.
"Our auto mall is a first-of-its kind initiative which will give truck owners a chance to trade their vehicles in a hassle-free manner.
At our auto mall, apart from trading of trucks, the truck owners will also be able to explore financing and insurance options and major repair facilities," Revankar said.
The overall plan is to have 50 such strategically located facilities on important highways of the country, he said.
The company also hopes to become a market leader in the equipment finance business in the next two-three years as a strong growth in infrastructure activity is expected to boost demand in the segment.
"Our equipment finance business is doing well and we are confident of a good growth in this segment," Revankar said.