Indian Businesses Will Revive In Sept If All Goes Well: Sundaram Finance

Image Credit: The Economic Times

The Logical Indian Crew

Indian Businesses Will Revive In Sept If All Goes Well: Sundaram Finance

"It is the big assumption we are making, and hopefully that is the right assumption," Srinivasaraghavan said. "If things play out, then we expect second-half onward life will return."

  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo

Sundaram Finance Limited, an Indian financier for commercial vehicle purchases, estimates that normalcy will return from September if authorities manage to tackle the COVID-19 outbreak and move ahead with an economic stimulus.

Until then, new vehicle sales and loan-book growth will stay constant, Managing Director T.T. Srinivasaraghavan said based on the estimate that any policies to reduce stress will require nearly four months to seep through the economy, only after the government is able to control the spread of the virus.

"It is the big assumption we are making, and hopefully that is the right assumption," Srinivasaraghavan said. "If things play out, then we expect second-half onward life will return."

Similar estimations expecting a total washout of the first half of the financial year started on April 1 and warned that India may be moving towards a rare economic slowdown for the future quarters, Bloomberg Quint reported.

Sundaram Finance said that government-imposed lockdown to curb its spread will affect asset quality across the country after affecting more than 2.5 million people and claiming as many as 175,000 lives globally.

While non-bank financiers like Sundaram Finance have been asked to freeze their customers' loan repayments, the financiers themselves are struggling for any such relief from their creditors such as big banks, Srinivasaraghavan said.

He added that smaller borrowers may also benefit from the regulator's move to offer cheaper cash to organizations that lend to farmers and rural housing.


"One is medical consequences, another is economic consequences, and — more importantly — social consequences, because livelihoods are being destroyed," he said. "The social fabric of this country is what I worry about a lot."

Also Read: Only 10% Of Pulses Promised Under COVID-19 Relief Package Distributed So far

Contributors Suggest Correction
Writer : Navya Singh
,
Editor : Prateek Gautam

Must Reads