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Shriram Transport Finance expects demand to pick up in Feb, March
Signalling a return to normalcy, India’s largest truck lender, Shriram Transport Finance Company (STFC) on Wednesday said its collection efficiency returned to 100 per cent in the second half of January after undergoing a brief blip in the first fortnight.
Umesh Revankar, VC-MD, STFC, said the collection rates would rise in February and March as more people get vaccinated and the Omicron variant was less impactful on business than originally feared. Collections rates reflects confidence levels in borrowers, often seen as a proxy of economic activity.
“Third wave (of COVID-19) was only temporary. Doctors advise normal treatment and people have come out of fear and business has returned to normal. Some state governments imposed some restrictions but later it was reversed, by most of them. Everything appears normal now”, he said. It pegs disbursements to reach pre-COVID-19 levels and expects demand to “shoot up” in coming months. “For February and March, we feel it will be good. Demand will shoot up soon,” he added.