Shriram Transport Finance Company (STFC) decided to raise Rs 2,000 crore by the way of non convertible debentures in 2013-14 in one or more tranches.
The company said this while announcing earnings results for the entire financial year 2012-13. Its net profit rose 8 per cent to Rs 1,361 crore year on year during 2012-13.
The lender attributed lower growth in profits to higher non performing assets (NPA) and lower net interest margins sequentially.
On a standalone basis, the net profit of STFC grew 15 per cent to Rs 355 crore during Jan-Mar 2013. The gross NPA grew 31 basis points to 3.20 per cent and net NPA rising rose to 0.77 per cent from 0.63 per cent sequentially.
Freight rates declined in March after rising in December which had a impact on paying capacity of the borrower, said Umesh Revankar, managing director, STFC.
The company is hopeful of 12-15 per cent growth in profits and assets under management (AUM) for 2013-14. AUM rose 23.5 per cent to Rs 49,676 crore.
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