Kotak Mahindra Finance Ltd's (KMFL), the leading commercial vehicle financier, has grown by leaps and bounds in a financial year marked by slipping commercial vehicle sales volumes.
According to Ajit Kumar, vice-president of the company, KMFL's disbursement to the vehicle operator went up by 60 per cent in the first quarter of the current financial year, 100 per cent in the second quarter and 120 per cent in the third quarter. The company is expecting an 140 per cent growth in the final quarter of the financial year. In contrast, the total commercial vehicle sales in the domestic market in the first nine months of the financial year dipped by three per cent.
The total disbursement of commercial vehicle loan of the company in the last fiscal was to the tune of Rs 250 crore. KMFL is expecting the loan disbursement to more than double in the current financial year.
The better result came because of the expanding reach of the company, Kumar explained. "We are no longer restricted to large cities only. Our operations have extended to talukas and villages," Kumar said.
On October 1, 2000, KMFL has implemented a new operational structure for its vehicle finance business with regional offices at the top, and the branch offices as a second tier. 'Subpockets' and 'talukas' are the third and forth tier of the structure. At present, the commercial vehicle business is being handled through five regional offices, 21 branches and 400 talukas and subpockets.
The company has engaged local persons as direct marketing agents to expand its business in the 'sub-pockets' and 'talukas'. It has, at present, around 100 such marketing agents. The company is planning to expand its vehicle finance business to states such as Kerala, Madhya Pradesh, Himachal Pradesh and Haryana, where it has limited or no presence during the next financial year.
