Shriram Transport acquires GE’s Indian transport finance unit
24 Dec 2009
Shriram Transport Finance Company (STFC) has acquired the Indian consumer and transportation finance businesses of GE Transportation Financial Services, part of the Indian operations of General Electric (GE), for Rs1,200 crore.
''The acquisitions would help improve Shriram's net interest margins (NIM) and add to bottomline going forward,'' R Shridhar, managing director of STFC said in an interview with CNBC-TV18.
The acquisition would be funded through borrowings.
Shridhar said, ''It is a portfolio acquisition; we have purchased the receivables and the assets.''
''We have been in segment truck financing. It's definitely attractive than what the yields we are getting in our business,'' Sridhar said.
STFC is the largest asset-based financing non-banking financial company (NBFC) in India with total assets under management of Rs27,000 crore.