Business & Investment

shriram Transport Finance Company: Shriram Transport Fin may consider raising $ 250 million through social bonds in the fourth quarter

Mumbai: After raising $ 500 million Issuance of social bonds Earlier this month, non-bank lenders may consider raising another $ 250 million from such bonds by March, top company officials said.

Deposits as part of the $ 3 billion Global Medium Term Note Program NBFC Raised $ 500 million at a 4.4% coupon rate.

according to Reserve Bank of India (RBI) Guidelines, Eligible Borrowers Can Raise External Commercial Borrowings (RBI)ECB) Up to $ 750 million per fiscal year for automated routes.

“It depends on the international market (conditions). We need to find a very good window (to raise $ 250 million from social bonds). If there is a window, we will raise it by March (2021). It may be, “said the company’s management. Director and CEO Umesh Revankar said.

The company’s deposits for the quarter ending December 31 increased by about 19% (year-on-year) from Rs 12,027.72 last year to Rs 14,335.36. On a sequential basis, the increase was close to 11%.

According to Revankar, the company used to mobilize deposits using corporate channels, but now all branches are accepting deposits, resulting in good inflows. ..

“Currently, banks’ deposit rates are low and depositors are looking for better ways, so I feel that the same momentum will continue. Also, the inflow to investment trusts has diminished, shifting to banks, and that. Most are shifting to non-banks.-Banks. There are major changes in our funding. ”

NBFC offers an average interest rate of about 8% on deposits.

According to Revankar, the company plans to mobilize deposits of around Rs 2,000 this quarter.

In the third quarter of the current fiscal year, profit after tax decreased by 17% from 879.16 rupees in the same period last year to 727.72 rupees.

Revankar attributed the decline in profits to a decline in the Net Interest Margin (NIM) and a associated increase in reserves of around Rs 220. COVID..

NIM stood at 6.88 percent compared to 7.34 percent.

As of December 31, 2020, COVID-19 had an additional expected credit loss (ECL) allowance for loan assets of Rs 2,507.26.

Total NPA improved from 8.71% to 5.33% during the quarter. Net NPA was relaxed from 6.09% to 3.22%.



shriram Transport Finance Company: Shriram Transport Fin may consider raising $ 250 million through social bonds in the fourth quarter

https://economictimes.indiatimes.com/markets/stocks/news/shriram-transport-fin-may-look-at-raising-250-mn-via-social-bonds-in-q4/articleshow/80613180.cms shriram Transport Finance Company: Shriram Transport Fin may consider raising $ 250 million through social bonds in the fourth quarter

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