1. ASSET FINANACE A new perspective
V V RAMANA
SREI BNP PARIBAS

2. Current Trends CE Financing
Mostly Standardized offerings, with Low level of Lease Penetration.
Un Organized Resale markets
Current trends
Low Customer Equity
Returns not commensurate with risks
Cash flow mismatches – Rentals
Auction / Resale trends – not comforting.
1/2/2019

3. Asset Finance
Asset is Core.
Usage – Not ownership
1/2/2019

4. Asset is the Core Asset is the core & not a collateral.
Its commercial finance
Capitalization value vs intrinsic value.
Lifetime value of the asset.
No secondary asset market
1/2/2019

5. Usage not Ownership Fast Depreciating assets are not capital assets.
Operational Expense.
Primary Usage & a Secondary life
Financiers & Manufacturers should underwrite asset risks not users.
Economic life of the asset is dependent on the usage and not the mandated life specified.
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6. Opportunities & Way Forward
Retail penetration will be key to Growth.
Rural markets needs greater penetration.
Multipurpose equipments bring in new customers
Capacity building, both for Manufacturers and Financiers will be key
Innovative financing and focus on Leases, customized solutions to help drive sales for equipment manufacturers.
Implementation of GST, should ease.
Legal remedies and financiers interest paramount for sustained growth.

7. THANK YOU
1/2/2019