Srei aims at 15% disbursement growth next fiscal
Real investments for new projects would begin only in the later part of the next fiscal year or in 2016-17, says a senior official
Mumbai: Infrastructure finance company Srei Infrastructure Finance Ltd looks at a disbursement growth of about 15% during the next fiscal year, a top company official said on Monday.
“This year, our disbursement growth will be around 7%, but next year, we could have around 15% growth," Srei Infrastructure Finance vice chairman Sunil Kanoria told reporters.
He said that although sentiment has improved after the new government took over, real investments for new projects would begin only in the later part of the next fiscal year or in 2016-17.
In the quarter ended September, the company posted a net profit of ₹ 21.21 crore as compared to ₹ 11.09 crore in the same quarter last year. Total income increased to ₹ 471.36 crore from ₹ 450.14 crore in the year ago quarter. Kanoria said that improvement in stressed assets would only be seen in the next year.
“It will take another two quarters to see pressure easing on stressed loans. With the new 5:25 rules, we could see some easing on the non-performing assets (NPA) side," he said.
Last week, Reserve Bank of India (RBI) had eased norms for flexible structuring of existing long-term project loans to infrastructure and core industries. The 5:25 scheme envisages banks to refinance or sell out their long-term project loans after every five years, so that both borrowers and lenders don’t face any issues. Kanoria said the company would look at selling its stake in existing projects and may not raise fresh capital.
Srei Infrastructure is in the process of divesting its stake in telecom infrastructure arm, Viom, where it holds around 13%. “We are looking at divestment in Viom. This could be through an initial public offering or strategic sale. The capital released would help us to grow," Kanoria said, adding that the company may also look at exiting its five operational road projects.
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