Incorporated on 9 Feb.'87 as Escorts Leasing and Financial, its name was changed to Escorts Financial Services in Dec.'91 and ultimately to Escorts Finance Ltd. Promoted by Escorts, the company is primarily engaged in purchase, lease financing, money market operations, merchant banking and portfolio management activities. It is registered with the SEBI as a category-I merchant banker.
The company provides hire-purchase / lease finance to corporates / individual clients for acquisition of light and heavy commercial vehicles, cars, two-wheelers, textile machinery, packaging machines, computers and consumer durables.
In 1992, the company launched its portfolio management scheme, discretionary and non discretionary. In Jan.'95, it came out with a public issue to significantly increase its hire purchase and leasing activities and to diversify into other areas of financial services. Aggregate disbursement for hire purchase and leased assets was Rs 2.30 cr during 1995-96.
Company acquired 30% of the equity capital of Escorts Consumer Credit Ltd a company engaged in hire purchase finance, leasing and bill discounting activities. The rating agency also re-affirmed the company with "FAA" i,e High Safety rating.
Company newly launched E-cash, a Smart Card based secured electronic Purse. It facilitates off line transaction processing without the need for any authorisation. This is the first company who launch it in India & Slowly & gradually picking up popularity in India.
During the year 2001 the company's Capital Adequacy Ratio was 29.09% against the RBI prescribed limited of 12%. The company has also consolidated its core business activity i.e. construction equipment financing while maintaining its presence in two wheeler finance.
The company is also examining suitable avenues for diversification given the limited scope for growth of its financial services business.
The company has also maintained its rating on public deposits of 'MA' by ICRA.