V Lakshmi Narasimhan, Chief Financial Officer of Magma Fincorp expects recovery in the commercial vehicle and equipment finance segments during the second half of 2013-14.
The recovery would have tangible impact on commercial vehicle and equipment finance segments. Owing to the sluggish growth in the economy, the growth in commercial vehicle finance and equipment finance are subdued across the sector as of now, he said.
Narasimhan said the company is confident of achieving its disbursement target of 40 per cent in 2012-13. He also said the cost of funds may decline if the central bank cuts rates in its January policy review.
In the second quarter, the company had reported a 30 basis points decline in cost of funds, with its yield on advances increasing by 13 -14 basis points, taking its net interest margin (NIM) to 4.91 per cent during that period.
Talking about the proposed guidelines by RBI on NBFCs, he said reducing time period to recognise NPAs, increasing of risk weight on some assets among others were the areas of concern for the industry.
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