Srei to continue its focus on equipment finance

The proposed step will also facilitate the lending entity, Srei Equipment Finance, to attract strategic investors and also prepare the company for a conversion into a bank, as and when the Reserve Bank of India (RBI) decides to allow the conversion. The revised corporate structures will now enable the companies and their management to focus on specific areas of their expertise.

Commenting on this step, Hemant Kanoria, Chairman, Srei Infrastructure Finance, said, ?The congregation of lending portfolio into Srei Equipment Finance will enable the group to improve efficiency, profitability, customer intensity and also reduce costs substantially. Srei Infrastructure Finance has developed wide expertise and experience in the infrastructure sector in the last three decades; so it will leverage its strength for augmenting fee-based business out of infrastructure advisory, infrastructure structuring and syndication, and other areas such as investment banking, insurance broking and fund management. The steps proposed will also enable to mitigate the risks in the present environment of slowdown in the NBFC and infrastructure sectors. Srei Infrastructure Finance will remain as the 100 per cent shareholder of Srei Equipment Finance.?

Devendra Kumar Vyas, Managing Director, Srei Equipment Finance, added, ?This consolidation would have far reaching benefits for our equipment finance business. This would also help us leverage our customer relationships better and also focus our resource for maximum economies of scale. This enhanced focus in our equipment financing business would facilitate in maintaining our dominance in the sector.?