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Shriram Finance becomes India’s largest NBFC post merger with 2 group entities

ith a solid net worth of  ₹40,900 crores and assets under management (AUM) of  ₹1,71,000 crores, Shriram Finance will be a diversified player.Premium
ith a solid net worth of 40,900 crores and assets under management (AUM) of 1,71,000 crores, Shriram Finance will be a diversified player.

  • Shriram Finance Limited (Shriram Finance) has been established by the merger of Shriram Transport Finance Company, the largest financier of commercial vehicles, and Shriram City Union Finance, the largest financier of two-wheelers and a pioneer in financing to micro, small, and medium enterprises (MSME).

Shriram Finance Limited (Shriram Finance) has been established as the largest retail NBFC in India by the merger of Shriram Transport Finance Company, the largest financier of commercial vehicles, and Shriram City Union Finance, the largest financier of two-wheelers and a pioneer in financing to micro, small, and medium enterprises (MSME). With a solid net worth of 40,900 crores and assets under management (AUM) of 1,71,000 crores, Shriram Finance will be a diversified player. The company serves more than 6.7 million customers across India. Driving the self-employed and the MSME sector will be a key component of the company's growth strategy.

Mr Umesh Revankar, a long-serving Shriram veteran, will serve as Executive Vice Chairman of the merged entity. Commenting on the merger he said, “It is the natural culmination of a journey of 43 years. With the balance sheet strengthened through the merger, we can serve the needs of the market better than ever before. As a customer-focused company, we can bring more products and assist them with access to credit faster. We have invested heavily in technology to improve efficiency and customer service levels. We are looking forward to an exciting phase of sustained double-digit growth."

Mr YS Chakravarti, MD & CEO, Shriram Finance commented, “The timing of the merger is brilliant. As India is growing, we are seeing robust demand for credit among MSMEs. We are always close to the market with our 3600+ locations. All our business segments– financing commercial vehicles, MSMEs, Personal Loans, Gold Loans, or Vehicle Loans – are poised to grow."

Shriram Finance also disclosed the appointment of Mrs. Maya Sinha as an Independent Director and Mr. Jugal Kishor Mohapatra as Chairman of the Company.

Shriram Finance Limited said in an official announcement that “The company also announced its growth strategy - Driving the Self-employed and Small Business Economy and has chalked out five strategic pillars to drive future growth:

1. To be the country’s most preferred financial services destination

2. Focus on self-employed, small businesses and new-to-credit customers

3. Diversified product portfolio across credit, insurance and investing to capture a larger wallet share

4. Generate an industry-leading Return on Asset (ROA) and Return on Equity (ROE) in the long term

5. Delivering customer delight in rural and semi-urban areas by leveraging technology and through empowered employees

“Founded in 1979 by the legendary Shri R Thyagarajan, Shriram always worked with a social consciousness that business must first and foremost serve the people. It is particularly proud of the fact that it has brought credit to millions of people who were otherwise denied access. The contrarian view has helped build one of India’s foremost financial institutions. Shriram Finances’ 57,000-plus employees will attest to this," said Shriram Finance Limited.

The largest retail NBFC in the nation, Shriram Finance provides lending options for commercial vehicles, two-wheeler, automobile, home, and gold loans, as well as personal and small business loans and a sizable fixed deposit business across India. The company manages more than INR 1.71 trillion in assets and serves more than 6.7 million customers. As of 30 September 2022, Shriram Finance has branches, rural centres, and outlets in approximately 3,600 sites throughout India, with a workforce of over 57,000 employees.

The Shriram Group is the largest financial conglomerate in India, with a stronghold in the financial services sectors of housing finance, commercial vehicle (CV) financing, retail financing, chit funds, MSME financing, asset management, stockbroking, distribution of financial products, and wealth advisory services. Over 22.5 million people have used the services of the Shriram Group collectively, and there are over 79,100 staff spread across 4,000 branches.

 

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