Shriram Finance’s AUM touches Rs 33,000 cr in AP, TS

Hyderabad Shriram Finance Limited, India’s largest retail NBFC announced that the company’s assets under management (AUM) in the states of Andhra Pradesh and Telangana have touched Rs 33 billion. The growth has been due to the economic turnaround, the recovery of rural markets and the reception of infrastructure activity. This, in turn, has boosted demand for financing for commercial vehicles, micro, small and medium enterprises (SMEs) and two-wheelers.

Shriram Finance caters to the diversified financial needs of 13.5 lakh customers through its 498 branches and over 10,000 employees across the Telugu states. The company has a large fixed deposit franchise in both states totaling over 2930 crores with over 46,000 depositors. The company’s growth strategy will focus on promoting the autonomous economy and the SME economy.

The top five products in the region are commercial vehicles, SMEs, two wheelers, gold loans and personal loans. The company will offer financial services to the underbanked and underserved and expand its reach into this customer segment. He will be responsible for increasing the penetration of the self-employed segment, especially those who do not have formal proof of income and who need capital to expand their small businesses.

Currently, with 498 branches across two Telugu states, commercial vehicle loans are offered in 268 branches, while 2W, MSME, gold loans and personal loans are offered in 230 branches. The company plans to expand CV loans in 170 new branches totaling 438, 2W in 80 new branches totaling 310, gold loans in 260 new branches totaling 490, SMEs in 208 new branches totaling 438 and personal loans in 60 new branches totaling 290. Mar-23 The plan is to roll out all products in all branches by the end of 2023.

Shriram Transport Finance Company, the largest commercial vehicle financier, and Shriram City Union Finance, the largest two-wheeler financier and a leader in micro, small and medium enterprise loans, have recently merged to form Shriram Finance. The new entity is a diversified player with net worth of Rs 37.5 billion and AUM of Rs 1.71 lakh crore, the company covers more than 67 lakh customers across India (as of September 2022).

YS Chakravarti, MD & CEO, Shriram Finance said, “Shriram Finance is an Aam Aadmi lender and our strategy is to focus on the self-employed and SME segment in the 2 states. SMEs face high cost of credit and often lack timely access to capital. . There is inadequate capital infusion and insufficient data on credit requirements. We specialize in understanding this segment and their credit needs.”

K Srinivas, Jt MD, Shriram Finance said on the occasion, “Shriram Transport & Shriram City two companies have come together to form Shriram Finance and we have joined forces and will look at leveraging each other’s potential in the coming year. AP and Telangana states Shriram Finance- are among the top five states and will continue to drive the company’s growth. We will focus on the SME lending segment, which has tremendous potential but faces financial challenges for growth, which we intend to plug.”

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