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Mar-14<br />
Mar-15<br />
Mar-16<br />
Mar-17<br />
Mar-18<br />
Sep-18<br />
Mar-14<br />
Mar-15<br />
Mar-16<br />
Mar-17<br />
Mar-18<br />
Sep-18<br />
Rs. Billion<br />
Rs. Billion<br />
CE & Tractor- Competition from banks to increase<br />
Exhibit 24 : AUM movement of CE Segment<br />
450<br />
400<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
-5%<br />
-10%<br />
Exhibit 25 : AUM movement of Tractor Segment<br />
400<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
Managed Advances<br />
Source: ICRA Research, NBFCs, Investor presentations<br />
% Growth<br />
Managed Advances<br />
% Growth<br />
❖ CE sales grew at a healthy pace with demand from the road sector; sales growth expected to remain robust at 17-20% for CY2018, while some slowdown<br />
is expected in CY2019; being the general election year<br />
❖ Competitive pressures from banks to increase, as cost of funding for NBFCs has increased quite sharply. NBFC credit growth for FY2019 is estimated at<br />
15-17%<br />
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -<br />
❖ Tractors sales growth of 16% for April-November 2018 (22% growth in FY2018) to support financing demand. Concerns around uneven rainfall is partly<br />
mitigated by central govt’ thrust on rural spending, hike in crop MSPs and loan waivers, which would put cash in the hands of the borrowers<br />
❖ NBFCs, however are likely to face competition from banks; credit growth estimated to be around 15-17% in FY2019<br />
19
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