Shriram Finance’s Loan Growth to Surge by 15-16% This Fiscal Year: CEO Y S Chakravarti
Shriram Finance, a Non-Banking Financial Company (NBFC), is preparing to boost its loan growth by 15-16% during the current financial year, according to Managing Director and CEO, Y S Chakravarti. To support this growth, the company aims to raise $1 billion (approximately Rs 8,300 crore) from international markets over the next six months.
Chakravarti detailed the funding plan, stating, "We plan to secure $300 million within the coming weeks, potentially by October, and an additional $500-700 million throughout the rest of the financial year." This funding will draw from development financial institutions including the Asian Development Bank, KfW, and the United States Development Finance Corporation (DFC), with exact timing contingent on market conditions.
Shriram Finance has a diverse funding strategy encompassing public deposits, bank financing, and domestic market capital. As of June 2024, the company’s Assets Under Management (AUM) tallied up to Rs 2.33 trillion. Loans disbursed in Q1 FY25 amounted to Rs 37,710 crore, a notable increase from Rs 30,455 crore in Q1 FY24.
In response to the Reserve Bank of India’s directive from November 2023, which necessitated lending entities to hold more capital for loans to NBFCs, Chakravarti noted that Shriram Finance remains unaffected by these tighter lending conditions. The firm’s higher credit rating and diversified borrowing sources cushion it against funding pressures that smaller, lower-rated NBFCs face, he added.
Expanding its gold loan business is also on the agenda, with plans to extend services from 1,500 branches and add 500 more in the next two years.
First Published: Sep 08, 2024 | 4:04 PM IST
Original Story https://www.business-standard.com/companies/news/shriram-finance-plans-to-raise-1-bn-from-overseas-in-next-6-months-124090800311_1.html
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