Vivriti Capital to raise ₹9k cr to fund growth, refinancing

TVS Capital-backed mid-market NBFC Vivriti Capital plans to raise around ₹9,000 crore this fiscal to meet its debt obligations and support expansion.

- Narayanan V, founder and MD Vineet Sukumar

In an interview with Narayanan V, founder and MD Vineet Sukumar discusses the firm's disbursement plans and the impact of RBI's rate cuts on its asset-liability profile. Excerpts:

How have recent rate cuts impacted your liability profile?

The rate cuts in the past were not accompanied by a commensurate increase in liquidity in the financial system. This time, the 50-bps rate cut was accompanied by measures on liquidity like reduction in the cash reserve ratio. It was needed for banks to be able to genuinely pass on the benefit to borrowers. The market has been anticipating it for a while, and therefore we saw the G-Sec going up for a day or two after the rate correction. I think the rate transmission in the G-Sec world has happened. It will take some time before it happens to AAA-rated bonds, followed by AA and A. We are rated A+. It will require market liquidity to remain soft for some time.

So, first the capital market will correct and then banks will start cutting rates.