S.Viji, Chairman, Sundaram Finance, leading financier of commercial and passenger vehicles, said that improvement in sales of commercial vehicles, is still some time away. He was addressing shareholders at the company’s 61st annual general meeting in Chennai on Wednesday.
Viji said that there are a “few early signs that the prolonged and severe slump in the commercial vehicle industry could be bottoming out.” He was however quick to advise caution, saying that while sales of passenger cars and utility vehicles have also exhibited some buoyancy recently, it is too early to draw any conclusions.
Viji criticised the lack of movement on legislative and regulatory fronts with respect to what he said were ‘legitimate and long pending demands of Asset financing NBFCs, to be afforded parity with Banks and Housing Finance companies, in respect of differential risk weights for different asset classes, tax treatment of NPA provisions and income relating to NPA accounts, and SARFAESI Act.’ He said these demands had fallen on deaf ears.
Further, while talk of regulatory convergence is growing shriller, these glaring anomalies in the regulatory prescription have been conveniently glossed over, he said.