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Forty two year old leasing specialist Industrial Finance Ltd is coming out with a rights issue to up capital.
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Forty two year old leasing specialist Industrial Finance Ltd is coming out with a rights issue to up capital. The privately held company’s core capital stands at Rs.
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40 mn – just Rs. 10 mn short of Central Bank’s minimum capital guidelines.
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"We will also go for a credit rating later this year, which will help us raise funds to fund our leasing base," says M F Fuard, Director/General Manager.

Throughout its four-decades of doing business, Industrial Finance has fed its leasing business through customer deposits.

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The leasing portfolio, which stands at Rs. 300 mn, is largely exposed to commercial vehicles.
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"We don't do buses because of its risky nature but we do a bit of three-wheelers as well," says Fuard.

The deposit base has grown from Rs.

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17 mn in 1994, Rs. 114 mn in 2003 to Rs. 144 mn.

Fuard says deposits products are currently sold between 10 percent (for 12 months) to 14 percent (for four years).

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The firm, which has interest in leasing, hire purchase, deposits, loans

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