How Vatsal Shah from Sushil Finance built 500 crore AUA #vendor #finance #homes


#sushil finance

#

How Vatsal Shah from Sushil Finance built 500 crore AUA

Mumbai based Vatsal Shah joined his father s stock broking business after completing his engineering in 2007. Founded by his father Sushil Shah in 1982, Sushil Finance today has 600 plus franchises across India with 1.40 lakh clients.

While the company s predominant focus has been broking, volatility and the shift in investor behavior prompted Vatsal to foray into mutual funds since 2009. Investors come for the flavour, and fun of trading in markets for a few months and become inactive later. Also, retail investors don t like volatility. We therefore started focusing on mutual funds, which offer a far superior alternative to participate in markets. It is a win-win for our company and investors alike. As investors benefit from long term growth in the market, we get a regular stream of income says Vatsal.

The result Vatsal has built an AUA of Rs. 500 crore in mutual funds across 25,000 clients. His MF business has grown three times in the last two years he says. So how did Vatsal acquire such a large clientele? He used a multi-pronged approach to grow his MF business. At the time he ventured into MFs, Vatsal didn t observe much meaningful differentiation in the services offered by many distributors. We wanted to add value. Thus, we introduced a product called Wealth Winner which recommends the level of exposure clients should have in equity and debt at various points of time based on a combination of fundamental and technical factors. This product was received well by investors.

Other than specialized products, technology has helped Vatsal achieve scale. We evaluated different platforms and found the exchange route to be the best. After using different platforms we found that the volumes were growing faster on the exchange platform, says Vatsal. The exchange platform allows him to execute bulk transactions at one go. Imagine how difficult would it be if we were to inform 100 clients to switch from equity to debt or to make fresh investment. The exchange platform helps us execute transactions faster without the hassle of filling up forms, he adds.

With the help of technology, Vatsal tapped his franchise to grow his MF business. We undertook a massive campaign to train our sub-brokers. We explained the stability of income in mutual funds vis- -vis broking income which is sporadic, says Vatsal. His objective was to activate more and more franchises to sell mutual funds.

Besides his franchise, Vatsal has started organizing financial planning seminars in companies to expand his clientele. We have started organizing seminars in companies where we explain the benefits of mutual funds. The conversion ratio is low but we are hopeful that this strategy will pay off in future.

Vatsal believes that the MF category will gain more popularity as investors, especially those who prefer traditional fixed return products, start looking for better returns. As the FD rates become unattractive, mutual funds will emerge as a big category going forward, believes Vatsal.

As the client base grows, making sure that each client gets the same level of attention and service is important. With a clientele of 25,000, Vatsal says that servicing them is a task. Communication is a challenge sometimes. We send reports on emails every month but some clients don t check their mails regularly, says Vatsal. To make portfolios easily accessible, Vatsal has also started sending portfolio valuation to all his clients through SMS. He is also working on a software which will offer a consolidated view of investors portfolio across all products.

While he has a team of 20 who look after MF clients, he says that some clients prefer meeting him personally to review their portfolios and make fresh investments.

An MBA from Indian School of Business, Hyderabad, Vatsal wants his company to be known for its research capabilities. He follows an algorithmic model for recommending funds to his sub-brokers. Firstly, we look at the risk- adjusted returns of funds. Secondly, we look at the normalized returns and thirdly we compare the point-to-point returns of a fund in the last eight quarters with the returns of Nifty. After filtering the best funds we prepare a list of recommended schemes.

Vatsal is among the growing breed of brokers who see a potential in mutual funds. He aspires to reach Rs. 1,000 crore in equity assets in the next five years. With his large franchise base, technological strength and differentiated services, Vatsal is confident that he will turn his dream into a reality soon.

Not able to understand routing of MF investment through stock exchanges. If you think it is fast and hassle free, then, I think you are wrong. In both the cases, you have to do KYC once when you open an account. After that, the transaction is completed is less than 30 seconds. In case of dealing through stock exchanges, you have to pay brokerage also.
Does it mean that Sushil Finance gets a part of the brokerage (since they are originally stock brokers) and also a commission from MF AMC.
If they are not getting or interested in brokerage, then, why they are not switching to a common aggregators platform like MFU or some such platforms.

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Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore – The Economic Times on Mobile #finance #news #today


#ashok leyland finance

#

Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore

The initial public offer comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

NEW DELHI: Hinduja Leyland Finance. an arm of Ashok Leyland. has filed draft papers with capital markets regulator Sebi to raise at least Rs 500 crore through the initial share sale.

The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

The company is considering a pre-offer placement of up to 2.6 crore equity shares for an amount not exceeding Rs 200 crore.

“Hinduja Leyland Finance. a subsidiary company of Ashok Leyland has filed today the Draft Red Herring Prospectus (DRHP) with Sebi for the proposed initial public offering of equity shares,” Ashok Leyland in a regulatory filing to stock exchanges.

It has appointed Axis Capital, ICICI Securities, SBI Capital Markets and Yes Securities as the merchant bankers for the public issue.

Hinduja Leyland Finance, a non-banking finance company (NBFC), provides customised finance to utility vehicles, tractors, cars, two wheeler and other commercial vehicles, focusing on the semi-urban and rural sector.

Hinduja Leyland finance, part of Hinduja Group which has global presence in automobiles, energy, IT/ITES, banking and finance, media, entertainment and infrastructure.


Shriram Transport Finance Q4 profit falls 55% to Rs144 crore as provisions jump #googlr #finance


#shriram finance

#

Shriram Transport Finance Q4 profit falls 55% to Rs144 crore as provisions jump

Total income of the company rose 26.2% to Rs2,918 crore from previous year’s Rs2,312 crore.

Hyderabad: Shriram Transport Finance Co. Ltd, India s largest truck financier, on Friday announced a net profit decline of 55% in the March quarter on a stand-alone basis, due to higher provisioning towards rising bad loans.

The company s net profit stood at Rs. 144 crore in the fiscal fourth quarter, compared with Rs. 316.70 crore the previous year. Total income rose 26.2% to Rs. 2,918 crore from previous year s Rs. 2,312 crore.

A Bloomberg poll of 21 analysts estimated net profit to be at Rs. 293 crore.

For the full year ended March, Shriram Transport Finance s net profit decreased 4.8% to Rs. 1,178 crore, while total income rose 18.5% to Rs. 10,245.30 crore.

In the fourth quarter, the company had to set aside Rs. 828 crore towards provisioning for bad loans, which were up 145%, compared with Rs. 338 crore the previous year.

The gross non-performing assets (NPA) as a percentage of the loan book rose to 6.2% in the March quarter compared with 3.8% in the same period the previous year.

The company said the rise in bad loans was also on account of migration to 150 days for non-performing loan recognition from 180 days from January and the transfer of Rs. 894 crore in NPAs of Shriram Equipment Finance Co. Ltd (SEFCL) due to the amalgamation of SEFCL with Shriram Transport.

The company s provision coverage ratio stood at 70.45% in FY16 as compared with 79.98% in FY15. The capital adequacy ratio was at 17.55% at the end of FY16 as compared to 20.52% at the end of FY15.

Net interest margin on assets under management, a measure of profitability, improved to 7.65% for the quarter from 6.67% a year ago. The assets under management grew 23.1% to Rs. 72,760.6 crore.

The company, which largely lends against used commercial vehicles, saw a growth in lending for both used and new vehicles. During the fourth quarter, sales of old vehicles grew by 21% to Rs. 65,135 crore, while new vehicle sales climbed 62% to Rs. 7,572 crore.

The deteriorating asset quality is a cause of concern, said a Mumbai-based analyst who tracks the company and did not want to be named citing his company s policy.

The results were announced after market hours.

Shriram Transport shares closed at Rs. 943.60 on BSE, down 2.28%, on a day when the benchmark Sensex gained 0.01% to 25,606.62 points.


Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore – The Economic Times on Mobile #finance #report


#ashok leyland finance

#

Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore

The initial public offer comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

NEW DELHI: Hinduja Leyland Finance. an arm of Ashok Leyland. has filed draft papers with capital markets regulator Sebi to raise at least Rs 500 crore through the initial share sale.

The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

The company is considering a pre-offer placement of up to 2.6 crore equity shares for an amount not exceeding Rs 200 crore.

“Hinduja Leyland Finance. a subsidiary company of Ashok Leyland has filed today the Draft Red Herring Prospectus (DRHP) with Sebi for the proposed initial public offering of equity shares,” Ashok Leyland in a regulatory filing to stock exchanges.

It has appointed Axis Capital, ICICI Securities, SBI Capital Markets and Yes Securities as the merchant bankers for the public issue.

Hinduja Leyland Finance, a non-banking finance company (NBFC), provides customised finance to utility vehicles, tractors, cars, two wheeler and other commercial vehicles, focusing on the semi-urban and rural sector.

Hinduja Leyland finance, part of Hinduja Group which has global presence in automobiles, energy, IT/ITES, banking and finance, media, entertainment and infrastructure.


Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore – The Economic Times on Mobile #reliance #home #finance


#ashok leyland finance

#

Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore

The initial public offer comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

NEW DELHI: Hinduja Leyland Finance. an arm of Ashok Leyland. has filed draft papers with capital markets regulator Sebi to raise at least Rs 500 crore through the initial share sale.

The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

The company is considering a pre-offer placement of up to 2.6 crore equity shares for an amount not exceeding Rs 200 crore.

“Hinduja Leyland Finance. a subsidiary company of Ashok Leyland has filed today the Draft Red Herring Prospectus (DRHP) with Sebi for the proposed initial public offering of equity shares,” Ashok Leyland in a regulatory filing to stock exchanges.

It has appointed Axis Capital, ICICI Securities, SBI Capital Markets and Yes Securities as the merchant bankers for the public issue.

Hinduja Leyland Finance, a non-banking finance company (NBFC), provides customised finance to utility vehicles, tractors, cars, two wheeler and other commercial vehicles, focusing on the semi-urban and rural sector.

Hinduja Leyland finance, part of Hinduja Group which has global presence in automobiles, energy, IT/ITES, banking and finance, media, entertainment and infrastructure.


Shriram Transport Finance Q4 profit falls 55% to Rs144 crore as provisions jump #car #finance #nz


#shriram finance

#

Shriram Transport Finance Q4 profit falls 55% to Rs144 crore as provisions jump

Total income of the company rose 26.2% to Rs2,918 crore from previous year’s Rs2,312 crore.

Hyderabad: Shriram Transport Finance Co. Ltd, India s largest truck financier, on Friday announced a net profit decline of 55% in the March quarter on a stand-alone basis, due to higher provisioning towards rising bad loans.

The company s net profit stood at Rs. 144 crore in the fiscal fourth quarter, compared with Rs. 316.70 crore the previous year. Total income rose 26.2% to Rs. 2,918 crore from previous year s Rs. 2,312 crore.

A Bloomberg poll of 21 analysts estimated net profit to be at Rs. 293 crore.

For the full year ended March, Shriram Transport Finance s net profit decreased 4.8% to Rs. 1,178 crore, while total income rose 18.5% to Rs. 10,245.30 crore.

In the fourth quarter, the company had to set aside Rs. 828 crore towards provisioning for bad loans, which were up 145%, compared with Rs. 338 crore the previous year.

The gross non-performing assets (NPA) as a percentage of the loan book rose to 6.2% in the March quarter compared with 3.8% in the same period the previous year.

The company said the rise in bad loans was also on account of migration to 150 days for non-performing loan recognition from 180 days from January and the transfer of Rs. 894 crore in NPAs of Shriram Equipment Finance Co. Ltd (SEFCL) due to the amalgamation of SEFCL with Shriram Transport.

The company s provision coverage ratio stood at 70.45% in FY16 as compared with 79.98% in FY15. The capital adequacy ratio was at 17.55% at the end of FY16 as compared to 20.52% at the end of FY15.

Net interest margin on assets under management, a measure of profitability, improved to 7.65% for the quarter from 6.67% a year ago. The assets under management grew 23.1% to Rs. 72,760.6 crore.

The company, which largely lends against used commercial vehicles, saw a growth in lending for both used and new vehicles. During the fourth quarter, sales of old vehicles grew by 21% to Rs. 65,135 crore, while new vehicle sales climbed 62% to Rs. 7,572 crore.

The deteriorating asset quality is a cause of concern, said a Mumbai-based analyst who tracks the company and did not want to be named citing his company s policy.

The results were announced after market hours.

Shriram Transport shares closed at Rs. 943.60 on BSE, down 2.28%, on a day when the benchmark Sensex gained 0.01% to 25,606.62 points.


Reliance Housing Finance targets Rs 50, 000 crore AUM by 2020 – The Economic Times on Mobile #car #finance #company


#reliance home finance

#

Reliance Housing Finance targets Rs 50,000 crore AUM by 2020

The company saw its housing finance AUM rise by nearly 70 per cent year-on-year to Rs 6,500 crore as on September 30, 2015.

NEW DELHI: Reliance Housing Finance. part of Anil Ambani-led Reliance Group. is targetting Assets Under Management (AUM) of Rs 50,000 crore by 2020 as it aims to join top-five league in the home loan market in three years.

The company saw its housing finance AUM rise by nearly 70 per cent year-on-year to Rs 6,500 crore as on September 30, 2015 and it expects to touch Rs 10,000 crore by the end of the current fiscal.

Reliance Housing Finance is a 100 per cent subsidiary of Reliance Capital. the financial services arm of Reliance Group.

“Focus on housing finance sector forms an important part of Reliance Capital’s growth strategy. We will aggressively continue to grow this portfolio”, Reliance Capital’s Group CEO and Executive Director Sam Ghosh said.

The housing finance sector is expected to see a robust growth in the coming years on the back of the government’s Housing for All by 2022 scheme.

The industry size is currently estimated at Rs 11 lakh crore and it is expected to grow to Rs 26 lakh crore by 2022, in terms of total loans outstanding.

Ghosh said that Reliance Housing Finance is targetting AUM of Rs 10,000 crore by the end of the current fiscal and of Rs 50,000 crore by 2020.

The company aims to be amongst the top five housing finance companies in next three years, he added.

“Reliance Housing Finance to focus on ‘Affordable housing’ in Tier-2 towns as part of its growth strategy. Our Focus would be on four states initially – Gujarat, Rajasthan, MP and Maharashtra. All these states are growing at a rate of 15 per cent in housing finance”, Reliance Housing Finance Director K V Srinivasan said.

As part of its expansion plans, the company is also looking to double its network, currently in 100 towns, by the end of two years.

It will focus on the SME and self-employed category, which form over 70 per cent of the housing loan demand, and is untapped by the structured banking sector.

Reliance Housing finance has developed expertise in assessing risk in this segment through its robust portfolio under the Reliance Commercial Loan segment which focuses on SME lending, Srinivasan said.

RHF offers loans at competitive rate with lowest rate of 9.6 per cent, amongst the lowest in the private and public sector, he added.

However, there are no plans of raising capital as capital adequacy is at 19 per cent as of September 30, 2015, as compared to regulatory requirement of 12 per cent.

The company recorded 73 per cent growth in its disbursements to Rs 761 crore, 74 per cent increase in income to Rs 200 crore, and 54 per cent growth in profit to Rs 31 crore during the quarter ended September 30, 2015.


Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore – The Economic Times on Mobile #mem #consumer #finance


#ashok leyland finance

#

Hinduja Leyland Finance files IPO papers to mop-up Rs 500 crore

The initial public offer comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

NEW DELHI: Hinduja Leyland Finance. an arm of Ashok Leyland. has filed draft papers with capital markets regulator Sebi to raise at least Rs 500 crore through the initial share sale.

The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 500 crore and an offer for sale up to 26,608,810 scrips by existing shareholders.

The company is considering a pre-offer placement of up to 2.6 crore equity shares for an amount not exceeding Rs 200 crore.

“Hinduja Leyland Finance. a subsidiary company of Ashok Leyland has filed today the Draft Red Herring Prospectus (DRHP) with Sebi for the proposed initial public offering of equity shares,” Ashok Leyland in a regulatory filing to stock exchanges.

It has appointed Axis Capital, ICICI Securities, SBI Capital Markets and Yes Securities as the merchant bankers for the public issue.

Hinduja Leyland Finance, a non-banking finance company (NBFC), provides customised finance to utility vehicles, tractors, cars, two wheeler and other commercial vehicles, focusing on the semi-urban and rural sector.

Hinduja Leyland finance, part of Hinduja Group which has global presence in automobiles, energy, IT/ITES, banking and finance, media, entertainment and infrastructure.


Shriram Transport Finance Q4 profit falls 55% to Rs144 crore as provisions jump #finance #on #cars


#shriram finance

#

Shriram Transport Finance Q4 profit falls 55% to Rs144 crore as provisions jump

Total income of the company rose 26.2% to Rs2,918 crore from previous year’s Rs2,312 crore.

Hyderabad: Shriram Transport Finance Co. Ltd, India s largest truck financier, on Friday announced a net profit decline of 55% in the March quarter on a stand-alone basis, due to higher provisioning towards rising bad loans.

The company s net profit stood at Rs. 144 crore in the fiscal fourth quarter, compared with Rs. 316.70 crore the previous year. Total income rose 26.2% to Rs. 2,918 crore from previous year s Rs. 2,312 crore.

A Bloomberg poll of 21 analysts estimated net profit to be at Rs. 293 crore.

For the full year ended March, Shriram Transport Finance s net profit decreased 4.8% to Rs. 1,178 crore, while total income rose 18.5% to Rs. 10,245.30 crore.

In the fourth quarter, the company had to set aside Rs. 828 crore towards provisioning for bad loans, which were up 145%, compared with Rs. 338 crore the previous year.

The gross non-performing assets (NPA) as a percentage of the loan book rose to 6.2% in the March quarter compared with 3.8% in the same period the previous year.

The company said the rise in bad loans was also on account of migration to 150 days for non-performing loan recognition from 180 days from January and the transfer of Rs. 894 crore in NPAs of Shriram Equipment Finance Co. Ltd (SEFCL) due to the amalgamation of SEFCL with Shriram Transport.

The company s provision coverage ratio stood at 70.45% in FY16 as compared with 79.98% in FY15. The capital adequacy ratio was at 17.55% at the end of FY16 as compared to 20.52% at the end of FY15.

Net interest margin on assets under management, a measure of profitability, improved to 7.65% for the quarter from 6.67% a year ago. The assets under management grew 23.1% to Rs. 72,760.6 crore.

The company, which largely lends against used commercial vehicles, saw a growth in lending for both used and new vehicles. During the fourth quarter, sales of old vehicles grew by 21% to Rs. 65,135 crore, while new vehicle sales climbed 62% to Rs. 7,572 crore.

The deteriorating asset quality is a cause of concern, said a Mumbai-based analyst who tracks the company and did not want to be named citing his company s policy.

The results were announced after market hours.

Shriram Transport shares closed at Rs. 943.60 on BSE, down 2.28%, on a day when the benchmark Sensex gained 0.01% to 25,606.62 points.


Reliance Housing Finance targets Rs 50, 000 crore AUM by 2020 – The Economic Times on Mobile #owner #finance #contract


#reliance home finance

#

Reliance Housing Finance targets Rs 50,000 crore AUM by 2020

The company saw its housing finance AUM rise by nearly 70 per cent year-on-year to Rs 6,500 crore as on September 30, 2015.

NEW DELHI: Reliance Housing Finance. part of Anil Ambani-led Reliance Group. is targetting Assets Under Management (AUM) of Rs 50,000 crore by 2020 as it aims to join top-five league in the home loan market in three years.

The company saw its housing finance AUM rise by nearly 70 per cent year-on-year to Rs 6,500 crore as on September 30, 2015 and it expects to touch Rs 10,000 crore by the end of the current fiscal.

Reliance Housing Finance is a 100 per cent subsidiary of Reliance Capital. the financial services arm of Reliance Group.

“Focus on housing finance sector forms an important part of Reliance Capital’s growth strategy. We will aggressively continue to grow this portfolio”, Reliance Capital’s Group CEO and Executive Director Sam Ghosh said.

The housing finance sector is expected to see a robust growth in the coming years on the back of the government’s Housing for All by 2022 scheme.

The industry size is currently estimated at Rs 11 lakh crore and it is expected to grow to Rs 26 lakh crore by 2022, in terms of total loans outstanding.

Ghosh said that Reliance Housing Finance is targetting AUM of Rs 10,000 crore by the end of the current fiscal and of Rs 50,000 crore by 2020.

The company aims to be amongst the top five housing finance companies in next three years, he added.

“Reliance Housing Finance to focus on ‘Affordable housing’ in Tier-2 towns as part of its growth strategy. Our Focus would be on four states initially – Gujarat, Rajasthan, MP and Maharashtra. All these states are growing at a rate of 15 per cent in housing finance”, Reliance Housing Finance Director K V Srinivasan said.

As part of its expansion plans, the company is also looking to double its network, currently in 100 towns, by the end of two years.

It will focus on the SME and self-employed category, which form over 70 per cent of the housing loan demand, and is untapped by the structured banking sector.

Reliance Housing finance has developed expertise in assessing risk in this segment through its robust portfolio under the Reliance Commercial Loan segment which focuses on SME lending, Srinivasan said.

RHF offers loans at competitive rate with lowest rate of 9.6 per cent, amongst the lowest in the private and public sector, he added.

However, there are no plans of raising capital as capital adequacy is at 19 per cent as of September 30, 2015, as compared to regulatory requirement of 12 per cent.

The company recorded 73 per cent growth in its disbursements to Rs 761 crore, 74 per cent increase in income to Rs 200 crore, and 54 per cent growth in profit to Rs 31 crore during the quarter ended September 30, 2015.