YS Chakravarti, MD & CEO of Shriram City Union Finance on Friday said that they are seeing good demand for working capital loans in small enterprise finance. He also believes that demand coming back for SME loans will drive AUM growth ahead.

“We are looking at mid to high teen growth in the AUM for the next financial year aided by our change in product mix. Last year we went slow on SME funding where the demand is now coming back. We expect on back of high demand for SME loans, the AUM to grow around mid to high teens,” he said in an interview to CNBC-TV18.

Chakravarti further noted that the collections for SMEs have picked up in the last two quarters and they are at comfortable levels. However, demand for two wheeler loans fell in Q4, especially in the month of February, he added.

Chakravarti also stated that they do not intend to make additional COVID-19 related provisions. “We are adequately provisioned and we don’t anticipate any need for additional provisioning,” he said.

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(Edited by : Pranati Deva)