Calcutta, June 20: Srei International Finance Ltd — the equipment finance company — has lined up securitisation deals for assets worth Rs 1,000 crore. In 2002-03, Srei securitised assets worth Rs 430 crore with various banks, said senior officials of the company.
Those that have evinced interest in acquiring assets from Srei include ICICI Bank, HDFC Bank, UTI Bank, ING Vysya Bank, Jammu & Kashmir Bank and Development Credit Bank.
ICICI Bank has a remarkably large appetite for Srei’s assets. It has agreed to securitise assets worth Rs 400 crore in the current financial year.
Srei managing director Hemant Kanoria said: “We manage a margin of 100-300 basis points from these deals, and use them extensively to reduce our risks.”
Sunil Kanoria, a director of the company, said Srei had developed a new financial technology called ‘on-tap securitisation’, which enables it to securitise assets from day one.
The Calcutta-based finance company today unveiled a 28 per cent growth in operating profits and a 26 per cent rise in net profits in fiscal 2002-03.
Disbursements during the year rose 20 per cent to Rs 765 crore, the company’s managing director said.
Srei posted a net profit of Rs 19.72 crore in 2002-03 compared with Rs 15.63 crore in the previous year. The earning per share for the year was Rs 2.74 and the company announced a dividend of Re 1 per share.
A number of overseas investors, including International Finance Corporation, DEG — the investment arm of the German government — and FMO, the investment arm of the government of the Netherlands, have invested in the company’s equity and debt instruments. BIO, the investment arm of the Belgian government, last year invested € 500 million in quasi-debt instruments of Srei.
The company has a foreign holding of 20 per cent at present, which could double by 2007, if these quasi-debt instruments were converted into equity.