Sundaram Finance intends to grow its assets under management by 17-18% year-on-year (Y-o-Y) and the net profit by 20%, managing director Rajiv Lochan said.
“We want to ensure that we keep a fair market share. In commercial vehicles, we have always had a double-digit market share. What we want to do is to regain our pre-pandemic growth trajectory,” he said.
The lender’s assets under management stood at Rs 31,980 crore as on September 30. AUMs should likely to surpass Rs 50,000 crore in the next two-three years, Lochan said.
In the key markets of Tamil Nadu and Andhra Pradesh, the company aims to maintain its market share in commercial vehicle loan vertical at 20%.
Sundaram Finance has a market share of 3-4% in the passenger vehicle segment and a market share of 5% in the tractor segment. Nearly 100% of Sundaram Finance’s loan book is made up of secured loans.
Around 50% of the company’s overall loan portfolio comprises commercial vehicle loans. Specifically, medium and heavy commercial loans account for 25% of the commercial vehicle book, and the remaining 25% is made up of light and small commercial vehicle loans.
“We expect the product mix to change. We do want to diversify from the medium and heavy commercial vehicle loan cycles. Our sense is that medium and commercial vehicles will come down to 20% or below from 25%,” Lochan said. “Small and medium-sized enterprises will probably go up to 8-10% over the next few years. Cars will probably remain at 25%.”
In addition to tweaking the product mix, the non-bank lender is focusing on increasing its presence in north Indian states.