Mumbai: After elevating USD 500 million by means of social bond challenge earlier this month, non-banking monetary firm Shriram Transport Finance Firm might have a look at elevating one other USD 250 million from such bonds earlier than March, a prime firm official stated. As a part of its USD 3 billion world medium-term observe programme, the deposit-taking NBFC had raised USD 500 million at a coupon charge of 4.4 p.c.As per the Reserve Financial institution of India (RBI) tips, eligible debtors can elevate exterior business borrowing (ECB) as much as USD 750 million per monetary yr underneath the automated route.
“It will depend on worldwide markets (situations). We have to search for an excellent window (to boost USD 250 million from social bonds). If there’s a window out there, we might elevate it earlier than March (2021),” the corporate’s managing director and CEO Umesh Revankar stated.
Within the quarter ended December 31, the corporate’s deposits grew by round 19 p.c (y-o-y) to Rs 14,335.36 crore from Rs 12,027.72 crore final yr. On a sequential foundation, the rise was near 11 p.c.
Revankar stated the corporate was earlier utilizing company channels to mobilise deposits however has now began accepting deposits throughout all its branches, and that has resulted in good inflows.
“We really feel an analogous momentum to proceed as a result of proper now deposit charges of banks are decrease and so depositors are on the lookout for higher avenues. Additionally, inflows into mutual funds have decreased and it’s getting shifted to banks and a very good a part of it to non-banks. There’s a massive shift in our useful resource elevating,” he stated.
The NBFC gives a mean rate of interest of round 8 p.c on deposits.
Revankar stated the corporate expects to mobilise deposits of round Rs 2,000 crore within the present quarter.
Within the third quarter of the present monetary yr, the corporate’s revenue after tax dipped 17 p.c to Rs 727.72 crore as in opposition to Rs 879.16 crore in the identical interval of the earlier yr.
Revankar attributed the drop in revenue to decrease web curiosity margins (NIM) and likewise on increased provisions of round Rs 220 crore associated to COVID.
NIM stood at 6.88 p.c in comparison with 7.34 p.c.
As of December 31, 2020, extra anticipated credit score loss (ECL) provision on mortgage belongings on account of COVID – 19 stood at Rs 2,507.26 crore.
Through the quarter, gross NPA improved to five.33 p.c from 8.71 p.c. Web NPA eased to three.22 p.c from 6.09 p.c.
