While its traditional way of doing business such as physical connectivity and verification of creditworthiness of customers is unconventional, it will leverage digital, technology and data without compromising on its ethos of security and customer orientation.
The company, which has diversified into financing passenger cars, construction and farm equipment over the years, will consider co-lending To create a new asset class, said Rajeev Lochan, a former McKinsey consultant who is now the managing director of the Chennai-based lender.
“The opportunities for growth and prosperity for the next five to 10 years are unprecedented,” Lowchan said. TT Srinivasaraghavan who led the company for 18 years. “What will be different is probably technology, digital, and data … Under the waterline, there will be more efficiencies through technology and data science, which will be different.”
Sundaram Finance, started in 1954, has been a conservative lender to truck buyers. But as competition has increased over the years, it is diversifying into other streams of lending, including car financing. Now it is trying to leverage the technology and possibilities for the Indian economy, which is set to accelerate the creation of rural economy and infrastructure.
“Rural India remains very strong, and therefore bodes well for the future,” Lochan said. “Rural segment has been quite strong, owing to normal monsoon, good procurement, good sowing, and absence of negative apprehensions.”
He said that a good sign of this is the results of FMCG companies on both the volume and price fronts. Lowchan, however, said urban markets are also seeing more optimism and confidence, partly driven by advances in vaccination. He further added that the company will continue to be an asset loan provider in passenger cars, material handling and construction equipment beyond commercial vehicles.
“The infrastructure space appears to be in dramatic investment mode right now. And similarly, with rural agriculture opening up opportunities on the back of unprecedented reforms in that sector, hopefully we will see implementation in the next few years, I think opportunities in that space as well. Will open.”
The government has accelerated spending in rural areas through schemes for direct transfer of housing, subsidies. also recently announced Gati Shakti program which will absorb national infrastructure projects worth ₹110 lakh crore.