30 p.c. interim from Sundaram Finance

By Our Special Correspondent

CHENNAI, FEB. 28. The non-banking finance company Sundaram Finance (SFL) has announced an interim dividend of 30 per cent for 1999-2000.

Addressing presspersons here today, the Managing Director of SFL, Mr. G. K. Raman, said this was the second year in a row that the company was coming out with a 30 per cent interim.

The company, he said, saw a 19 per cent growth in hirepurchase business at Rs. 658 crores, up from Rs. 548 crores in the corresponding period of last year. The current year would end with a disbursal of around Rs. 850 crores (Rs. 714 crores) under hire-purchase, he added. SLF, according to its Deputy Managing Director, Mr. T. T. Srinivasaraghavan, had made significant strides in funding commercial vehicles and cars. Unitwise, SFL's car finance had jumped by 58 per cent at 12,500 (8,000) during the nine-month period. Mr. Raman said this was very satisfying considering the fact that nationally car finance registered a growth of around 53-54 per cent. He estimated that SFL share in car finance would be in the vicinity of 2-2.5 per cent.

Similarly, SFL had registered a 45 per cent growth in commercial vehicle financing as against an industry growth of 35 per cent. It had funded around 5,880 vehicles during the nine-month period, up from 4,046 in the corresponding period of last year. Even taking into account the 1997-98 figures, SFL, Mr. Srinivasaraghavan said, had shown a 28 per cent jump in commercial vehicle finance. According to Mr. Raman the share of SFL in commercial vehicle segment should be around 10 per cent after taking into account only the civilian sale.

To a question, the MD said SFL had already commenced funding of two-wheelers. ``Any good model which has a resale value we can fund,'' he said. Questioned if SFL would rethink on its decision to spike its insurance proposal, Mr. Raman replied in the negative. Nevertheless, he indicated that SFL would seriously consider becoming an agent for a private insurance company.

The deputy MD said FMO Netherlands, a Dutch Government-owned development financial institution, would be the third partner in SFL's home finance venture. The Dutch outfit's proposal for picking up 15 per cent stake awaits the Foreign Investment Promotion Board nod. IFC of Washington will pick up 20 per cent.

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Section  : Business
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