Commercial Vehicle and Construction Equipment Lending - Managing Asset Credit Risk

Registration for this programme has been closed, pls download the brochure for future session.

 

Summary

 

Programme Background and Objectives

 

Over the past few decades, the share of road transport in the total surface traffic movement in India has been gradually increasing with a distinct shift away from the railways being observed. Most recent estimates give the road mode a share of nearly 70 per cent in freight movement compared to its share of just about 10 per cent in the early fifties. The percentage is likely to move up to 85 Percent given India’s road Infrastructure and logistic improvement plans together with accent on manufacturing growth. This will drive demand for new and old commercial vehicles with increasing need for specialty haulage vehicles and attached vehicles with large and medium logistic operators. Coupled with new emission norms driving new vehicle demand the opportunities in the sector are growing.

 

The impending advent of GST, the higher growth trajectory of the Indian economy and the starting up of stalled projects is expected to push up demand for specialized construction and material handling equipment to complement the warehouse and logistic needs for faster movement of goods and for efficient supply chain practices.

 

Given India’s infrastructural deficiencies and the need to build the same, construction equipment financing is only slated to grow in the years to come as majority of construction equipment and commercial vehicles are acquired under some sort of financing or leasing plans. In many senses India is likely to witness integrated logistic players handling commercial vehicles as well as material handling and construction equipment.

 

Both segments are very specialized businesses that require specialized credit assessment and portfolio management skills with understanding of the asset types, uses, primary and secondary market and resources to manage equipment and the lending portfolio. Repossession and redeployment of such assets will pose a challenge to any financing Institution unless close linkages with Manufacturers, Resellers, agents and contractor community exists.

 

Managing such portfolios will require considerable research and understanding of the user segment, Macro and Micro economy and impacts, Industry sectors and Risk management techniques and tools.

 

The programme will benefit

 

  • Credit and sales managers entrusted with CV/ CE financing and portfolio management/ policy formulation.

Training dates - February 06-07, 2020

Training location - Mumbai

Training fees - ₹22,000 + applicable taxes