Shriram Transport Finance has turned relatively better in midst of the pandemic and growth certainly looks strong in the last reported quarter. The company is confident of asset growth of close to 6 percent in FY21 and double-digit in the years ahead.

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Despite an increase in demand for a new vehicle in recent times with relatively lower lending yields the company is confident of maintaining its margin in lieu of its pricing power with existing clients.

It has a comfortable capital adequacy ratio of 23.6 percent and has diversified lending sources.

The scrappage policy is likely to be a demand driver with scrapped vehicles likely to be replaced by used vehicles of lower vintage and higher ticket size.

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(Edited by : Priyanka Rathi)

First Published:Mar 30, 2021 1:18 PM IST