Home / Companies / News /  Shriram City looks to disburse up to 23,000 cr in FY22

MUMBAI : Chennai-based non-banking finance company Shriram City Union Finance (Shriram City) is eyeing total disbursements of 22,000-23,000 crore in the current financial year, a top company official said.

During the first quarter of 2021-22, it disbursed 4,560 crore compared to 6,570 crore in March 2021 quarter. The lender's managing director and CEO Y S Chakravarti said July 2021 was better than June with disbursements crossing 3,000 crore. 

Even the collection efficiency had touched closed to 100% in July compared to 93% in June."On an average it (disbursements) is around 6,200-6,300 crore per quarter. In the remaining three quarters, we expect to touch about 18,000-19,000 crore. For the financial year, we should end up with 22,000-23,000 crore (of disbursements)," Chakravarti said.

The lender provides finance to segments including small and medium enterprise (SME), two-wheelers, personal loans, gold loans and loan against property.

Chakravarti said the company is seeing good demand from SME and gold loan segments and will continue to focus on growing the book there."We went slow on SME (financing) for the last one-and-a-half years. It has come down from 55 per cent to close to 49 per cent right now. The idea is to take it back to 55 per cent," Chakravarti said.

Another major segment for the lender is two-wheeler financing, which is around 26-27% of its total loan portfolio. He expects to disburse around 1,500-1,600 crore in the two-wheeler segment in the second quarter of current fiscal.

In the quarter ended June 2021, the lender reported a profit after tax of 208 crore as against 192 crore in the year-ago period. Its asset quality improved year on year, with gross stage 3 levels at 6.91% in Q1 FY22 compared to 7.28% in the corresponding quarter of the previous fiscal. 

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout