: Equitas Small Finance Bank has chalked out plans to grow its new commercial vehicle finance portfolio from the present share of five per cent to between 35 to 40 per cent over the next two years,a top official said.
The city-based bank provides loans to used commercial vehicles and recently launched finance schemes to purchase new such vehicles, Equitas Small Finance Bank, Managing Director and CEO, Vasudevan P N said.
"We have been providing finance to used commercial vehicles. Two quarters back we started new commercial vehicle financing. That will also add to the growth (of the bank)", he told PTI.
The bank offers loans for purchase of Light Commercial Vehicles and multi-axle vehicles, he said.
"Right now, new commercial vehicle finance contributes about five per cent of the total vehicle finance. In two years time, we expect this to be 35-40 per cent", he said.
He said the total vehicle finance portfolio was around Rs 2,500 crore, of which contribution of new vehicle financing was around Rs 150 crore.
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In the 2017-18 fiscal, the bank waived Rs 145 crore after the demonetisation announcement by the Centre in November 2016, he said.
"So our total Profit After Tax for the full year 2017-18 was only Rs 31 crore. This year in the first quarter ending June 30, 2018, our advances grew by 27 per cent. We expect that to grow by 40 per cent", he said on the outlook for the current financial year.
To a query on digital banking, he said nearly 92 per cent of transactions are now digital while the remaining eight per cent comprised customers who come to bank branches to make transactions.
"We have spent around Rs 200 crore for this. We are very digitised. We have everything rolled out, right from mobile banking and net banking. Our ATMs also have CRM machines which can either accept cash or give out cash", he said.