Demand for core products rising with easing of lockdown: IIFL Finance
IIFL Finance is in focus after Abakkus and Smallcap World Fund bought stake in the company via a block deal. In another transaction, CDC Group, offloaded Rs 1.4 crore shares in IIFL Finance through open market. Nirmal Jain, Founder and Chairman at IIFL Group, spoke to CNBC-TV18.
IIFL Finance is in focus after Abakkus and Smallcap World Fund bought stake in the company via a block deal. In another transaction, CDC Group, offloaded Rs 1.4 crore shares in IIFL Finance through open market. Nirmal Jain, Founder and Chairman at IIFL Group, spoke to CNBC-TV18.
On collections, Jain said, “Collections were indeed impacted in April and May and they behaved differently for different segments. Expectedly, unsecured business loan and microfinance were impacted more in the months of April and May. In June, things improved and as we go forward, it looks like things will improve.”
He added, “As businesses come on track and as most of the people get back to their businesses with easing of lockdown, we see collection efficiencies improving across all business segments.”
On credit demand, he said, “We are also seeing the demand for credit picking up, so our gold loan as well as affordable home loan and business loan, for all the core products, we are seeing very good demand wherever things are opening up.”
On raising capital, Jain said, “At this point in time, we don’t need capital in any of our group companies. At this point in time, we don’t have any plans to raise equity in any entity. Our capital adequacy has been 25 percent which is well above the threshold.”
On restructuring of loans, he said, “We don’t need to structure much under RBI norm because our real estate book, significant part of it has been moved to an alternate investment fund, which will be separately managed. Most of other loans are retail loans and we just can’t disclose the numbers like this being a listed company, but what I can say is that things have improved.”
For full interview, watch accompanying video.
(Edited by : Dipika)
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