Company’s loan book tenure as stated in Investor presentations for Wholesale book is 3 years, Mid-size LAP – 3 years and SME is 6 years. But when we see and disbursements vs loan book, company’s book runs down almost 100% every year and company has to disburse almost equivalent to their loan book. I understand that there will an element of prepayment in the business and book will not retained in book for 3 or 6 years, but with current rate, their book rundown is much higher than microfinance companies.
Anyone knows why their book runs down such a shorter period, when other SME related lending companies have much lesser run down per year
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