Srei Infrastructure Finance will hive off its lending business into subsidiary company, Srei Equipment Finance, as it focuses on growing the equipment finance business and reducing the infrastructure loan portfolio.
Srei Infrastructure, the parent company, will largely focus on fee-based business through infrastructure advisory, infrastructure structuring and syndication, and other areas such as investment banking, insurance broking and fund management, said a press statement.
As on March 31, 2019, the company’s total assets under management (AUM) were close to Rs. 48,000 crore. While Srei Infrastructure had AUM of Rs. 16,000 crore, Srei Equipment’s AUM stood at around Rs. 32,000 crore.
The move to consolidate its lending operations into one entity will help Srei Equipment attract strategic investors and also prepare the company for conversion into a bank, as and when the Reserve Bank of India decides to allow systematically important NBFCs to convert into banks.
