Entry of multinational financial institutions and banks in the retail financing segment has led to a drop in the lending rates affecting the volumes of business handled by non banking finance companies (NBFCs) in the recent years. And since ALF was focussing more on containing its borrowing costs rather than on increasing its business there has not been much of growth in the disbursement levels in the commercial vehicle segment, said ALF managing director S Nagarajan at a press conference on Wednesday.

During the year disbursements in the commercial vehicle segment have increased by about 5 per cent to Rs 558 crore (Rs 514 crore). The construction equipment financing has gone up by about 12 per cent, from Rs 128 crore as compared to Rs 114 crore in the previous year.

ALF has securitised assets worth Rs 340 crore during the year and has also issued Rs 135 crore secured redeemable convertible debentures on private placement. This instrument carries AA- rating denoting high degree of safety. It has also raised Rs 51 crore of 9 per cent cumulative convertible preference shares on rights issue basis in May 2000, which was fully subscribed.

In the year 2000-2001, the company is planning to enter the consumer durables segment and proposes to disburse a minimum of Rs 100 crore under the category.