Srei Infra to transfer lending assets to Srei Equipment
Srei Infrastructure Finance will remain the holding company for Srei Equipment Finance
Srei Infrastructure Finance has decided to consolidate all its lending business into its wholly owned subsidiary Srei Equipment. According to a statement by Srei, the proposed step, apart from cost efficiency, will create room for the lending entity, Srei Equipment, to attract strategic investors and also prepare the company for conversion into a bank, as and when the Reserve Bank of India (RBI) permits.
Srei Infrastructure Finance will remain the holding company for Srei Equipment Finance.
"The process of transfer will be completed in the next 3 to 4 months," Srei chairman Hemant Kanoria said.
The consolidation will also enhance customer experience, bring in economies of scale, allow the companies to offer their services at competitive rates and provide greater flexibility in accessing capital, the company release stated.
Elaborating, Kanoria said: "The proposed move will also enable Srei to mitigate the risks in the present environment of slowdown in the NBFC and infrastructure sectors."