Shriram Transport Finance Company (STFC) has received approval from its shareholders, creditors and unsecured creditors for its merger with Shriram City Union Finance (SCUF), Umesh Revankar, Vice Chairman and Managing Director at Shriram Transport Finance Company tells Zee Business Managing Editor Anil Singhvi in an exclusive interview.    

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On 15 June, the company received approval from the Reserve Bank of India (RBI).  

Approvals from shareholders and creditors of Shriram City Union Finance has also been received, the VC said.  

A report will now be submitted by the Chairman to the NCLT (National Company Law Tribunal), Revankar said. Once the NCLT give its go ahead for the merger, the companies could work as a combined entity, he added. It could take another 1-2 months, he further said.  

Shriram Transport, which started its operations in 1979, is one of the stalwarts in the industry in the segment and now has a balance sheet size worth Rs 1.27 lakh cr. The company does financing in areas including construction, automobile, equipment. 

The company has tied up with over 500 private financiers and has a customer base of 21.10 lakh.      

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On the existing demand situation for commercial vehicles, the VC said that the demand for commercial vehicles (CVs) in the country is likely to remain over the next two years. 

 It has been consistent and has been up in all the segments be it small small CVs, light CVs (LCVs), heavy CVs (HCVs), construction equipment, the VC said. The growth rate slightly reduced in April because of high fuel prices but the growth remained intact, added.  

 Revankar said that the sales 1 million in 2018-19 reduced by half in 2020-21. The demand is now picking up, though there is still some time to catch up.  

He also did not see any material impact on its business as a result of rate hikes even as the company has undertaken minor hikes. 

Revankar said that the company follows a contracted lending model which means that the EMI is not affected in loans that have already been disbursed.  

Only new contracts are impacted by rate hikes, he further said.