By IANS,
Chennai : Religare Finvest Ltd (RFL), a non-banking finance company, has signed a strategic agreement with the Pune-based three-wheeler manufacturer Kumar Motors Private Ltd for financing commercial vehicles.
According to the agreement, RFL, a 100 percent subsidiary of Religare Enterprises Ltd, would finance the vehicles made by Kumar Motors.
“The first year target is around 10,000 three wheelers,” Sachindra Nath, chief operating officer of Religare Enterprises, told reporters here Thursday.
“We may go for funding second hand truck purchases,” he added.
Currently, the City-based Shriram Group is the pioneer in financing second hand trucks and is one of the leading truck financiers in the country.
According to Nath, three wheeler transportation accounts for over 70 percent of all cargo movement within the country offering good business opportunity for any organised player.
RFL’s loan book size is around Rs.20 billion ($502 billion) consisting of loans against shares, personal loans and initial public offering (IPO) loans.
Disinterested in buying loan portfolios from other finance companies, Nath said: “We will build our portfolio. We are not in for playing the balance sheet number game.”