Chennai: Shriram Transport Finance Co. Ltd said Umesh Revankar is set to take over as managing director on 1 April from R. Sridhar as part of the company’s succession plan.
The truck finance company told the stock exchanges that the board will consider his appointment on 10 February. The succession plan had been decided in a 26 July board meeting. Revankar is currently deputy managing director.
He will be taking over amid a halving of the loan growth forecast to 10% by the company for the fiscal year because of rising interest rates that have discouraged prospective borrowers from buying new or used vehicles.
If recommendations on non-banking finance companies made by a former central bank deputy governor are implemented, the core-capital requirement could rise to 12% from 9% and provisioning norms for bad loans will become more strict.
Sridhar will become a board member of Shriram Capital Ltd, the holding company of the Shriram group.