As the stock of Shriram Transport Finance fell 10% on Wednesday after the company provided a guarantee of Rs 870 crore to its unlisted subsidiary, Umesh Revankar, managing director, said there is no need for provisioning as the company expects the loan to be serviced by SVL.

SVL is an unlisted entity belonging to the Shriram Transport Finance.

In its research note, Jefferies, said that SVL had issued Rs 650 crore worth zero coupon non-convertible debentures (NCD) in June 2015, which were maturing next year.

Speaking to CNBC-TV18, Revankar said that SVL is doing good business and will be coming out of this crisis successfully.

Revankar sees a robust demand in vehicle financing, which is quite good from the rural area.

First Published:Jul 4, 2018 1:47 PM IST