Shriram City Union Finance’ Consolidated Disbursements Doubled to

Shriram City Union Finance’ Consolidated Disbursements Doubled to INR 7,056 Cr, AUM Rose to INR 34,680 Cr up 14.4% YoY in Q2FY22

Shriram City Union Finance Ltd. (Shriram City), India’s largest two-wheeler financer (number of 2W financed) and part of the Shriram Group announced the financial results for Q2FY22 today. The consolidated results include Shriram City and Shriram Housing Finance Limited. On a Consolidated basis, disbursements nearly doubled to INR 7,056 Cr, up 97.2% YoY and grew by a strong 47.6% sequentially. Assets Under Management (AUM) of INR 34,680 Cr is higher by 14.4% YoY. Posted consolidated Net Profit of INR 301 Cr, higher by 36.8% QoQ and 9.4% YoY. 

Shriram City’ Standalone disbursements more than doubled to INR 6,423 Cr, up 110% YoY, up 40.8% sequentially. AUM rose by 10.5% YoY to INR 30,425 Cr. Profit After Tax rose by 9.9% YoY to INR 282 Cr in Q2FY22 compared to INR 257 Cr last year. Collection Efficiency stood at 100% in July-August, and improved further to 102% in September. Asset quality continued to show improvement sequentially, with Gross Stage 3 levels at 6.86% (6.91%: Q1FY21 and 6.67%: Q2FY21). Credit cost too improved to 2.70%. Restructured book stood at INR 162 Cr, representing 0.53% of AUM. The company has liquidity back up of INR 4,178 Cr as of end Q2FY22.              

SME loans, contributes 47% of the total AUM and witnessed the highest disbursement of INR 1,825 Cr. The company is the largest Two-Wheeler(2W) financer, with 2W loan disbursements for the quarter at INR 1,449 Cr, up 44.9% YoY. Gold loans disbursements stood at INR 1,482 Cr in Q2FY22. Personal Loans and Pre-owned 2W Loans showed a strong rise, with disbursements of INR 959 Cr & INR 405 Cr respectively.  

Shriram Housing Finance Ltd, a Subsidiary of Shriram City providing affordable home loans had a strong Q2FY22, with AUM growth of 53% YoY to INR 4,255 Cr compared to INR 2,779 Cr in Q2FY21. Disbursals were better than the pre-covid levels, at INR 633 Cr compared to INR 221 Cr in Q1FY22 and INR 517 Cr in Q2FY21. Profit After Tax grew by 73% YoY to INR 18.8 Cr compared to INR 10.9 Cr last year. Asset quality improved with Gross Stage 3 assets at 1.72%, declining 36bps sequentially.

Commenting on the performance Mr. Y.S. Chakravarti, MD & CEO, Shriram City said: “We are back to our pre-covid run rates and the festive season cheer along with good monsoon is aiding rural demand. Business sentiment and Consumer sentiment has turned conducive to support the healthy growth. On the digital side, we launched our AI platform which is powering demand for two-wheeler finance. We have partnered with EV manufacturers and have tweaked our credit mechanism to cater to EVs financing which is seeing strong demand. Shriram Housing Finance had a stellar quarter, with AUM growing 53% in Q2FY22 and we will gain further momentum in 2HFY22 with home affordability staying elevated. Also now with the recent capital provided to Shriram Housing of INR 300 Cr, we are well placed to capture the high growth and underpenetrated small ticket housing loan segment.”

Shriram City Union Finance & Shriram Transport Finance Company Raise

 Shriram City Union Finance & Shriram Transport Finance Company Raise Record Retail Fixed Deposits worth INR 2,000 Cr in July 2021

Shriram City Union Finance Ltd. (Shriram City), a Chennai-based leading SME, Two-wheeler, Gold Financing Non-Banking Financial Company (NBFC), and Shriram Transport Finance Company (STFC), a Mumbai-based company, one of the country’s largest Asset Financing NBFC, both part of the Shriram Group raised record Retail Fixed Deposits (FDs) worth INR 2,000 Cr in July 2021. Attractive interest rates, large customer base of 6.4 Million customers, long track record of 20+ years of issuing FDs, digitally enabled systems, strong parentage and reputed brand name, along with the covid induced need for security led to the record FDs raised by Shriram City and STFC.

Shriram City raised retail FDs worth INR 390 Cr, while STFC raised INR 1,610 Cr in July 2021, the highest ever funds raised from retail FDs for both entities. In Q1FY22, Shriram City witnessed Retail FD growth of 33% to INR 5,761 Cr, while STFC saw a growth of 49% to INR 17,903 Cr.

Shriram City has a large active customer base of 4.3 Million customers spread across 926 branches. Top 3 states for Shriram City are Tamil Nadu, Andhra Pradesh and Telangana. Shriram City has 94% of its branches located in Rural and Semi Urban locations. Public deposits comprise 22% of the company’s borrowings.

STFC has a strong customer based of 2.1 Million customers spread across 1821 branches. Top 3 states for STFC are Maharashtra, Tamil Nadu and Delhi. STFC has 88% of its branches located in Rural and Semi Urban locations. Public deposits comprise 17% of the company’s borrowings.

FIXED DEPOSIT Rates- Amount <= Rs. 5 Crore (SHRIRAM CITY & STFC.) w.e.f. 1st August 2021
	Non-cumulative  Deposits				Cumulative Deposit
Period (months)	Monthly % p.a	Quarterly % p.a	Half yearly % p.a	Yearly %p.a	Effective yield % p.a.	maturity value for Rs 5000/-
12	6.31	6.35	6.40	6.50	6.50	5325
24	6.54	6.58	6.64	6.75	6.97	5695
36	7.25	7.30	7.37	7.50	8.08	6210
48	7.34	7.39	7.46	7.60	8.51	6700
60	7.48	7.53	7.60	7.75	9.05	7260

Additional interest of 0.30% p.a for Senior Citizens

Commenting on the record FDs Mr. Y.S. Chakravarti, MD & CEO, Shriram City said: “We are constantly working on providing our customers better products, be it on the credit or deposit side and it is reassuring to see how many customers choose to place their hard-earned money with us. The rates offered by the Shriram Group entities are one of the most attractive in the industry and backed by a strong parentage it makes for a great investment, especially for risk-averse investors.” 

Mr. Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance Company Limited said: “At Shriram Transport we have invested extensively in the way we do business digitally, which has the potential to draw deposits and service loans from a broader pool of potential customers. Above everything it’s the long-standing positive relationships, strong brand awareness and loyalty, along with the fact that we are firmly established within the communities we serve that is bearing fruit.”

Shriram City Union Finance signs MOU with

 Bharath Institute of Higher Education and Research (BIHER)

Shriram City Union Finance, a leading Non-Banking Financial Company signs a MOU with Bharath Institute of Higher Education and Research (BIHER), a regional multi-disciplinary University in Chennai for up-skilling the talent of its employees through the Continuous Learning Partnership Program (CLPP). 

Continuous Learning Partnership Program (CLPP) of Shriram City Union Finance has been exclusively designed for the working executives at SCUF in order to enhance their knowledge and skills of talent which will thereby enable them to accelerate growth both in their management role and in their career.  With an aim to provide the best of the values and knowledge BIHER has moulded the program using blended learning methodology which would help the working executives to learn along with their work.

Speaking on this occasion, Mr. Y S Chakravarti, MD & CEO, Shriram City Union Finance said “We strongly believe that to sail a business organisation in this ever changing dynamic environment employees need to be equipped with deep functional and integrative perspective in both local and regional business settings. I hope, this strategic alliance with BIHER will further open and accelerate the growth of our employees personally and professionally.”

Prof. Dr. Vijaya Bhaskar Raju K, Vice Chancellor of BIHER, said “we are focused to support the talent of Shriram City Union Finance Ltd., by introducing them to the emerging concepts and frame works in financial services Industry to learn the traditional and non-significant business models as per today’s context. This partnership will go on a long way in providing up-skilling the right talent and helping them to draw long career with Shriram group.”

Shriram Housing Finance Limited raises

Shriram Housing Finance Limited raises Rs.300 cr from Banks

 ·        Raises over 700 cr in the current calendar year·        The Company reported a 25% growth in AUM

Shriram Housing Finance Limited (SHFL) amidst the current challenging circumstances prevailing in the financial sector, has raised long term debts of around Rs.300 crore from the banking sector. The company raised Rs.250 cr long term Loan from a PSU Bank at 8.50%, the loan being repayable in 5 years.  The company has also raised Rs.40 cr NCD under TLTRO 2 at an annualised coupon of 8.55%. With this, the company has raised over 700 cr in the current calendar year.

In the recently declared Financial Results for the year 2020 by Shriram Housing Finance, the company reported a 25% growth in its AUM to Rs.2305 crore by clocking disbursal of Rs.1127 crore for the year. The company has reported a jump of 160% in PBT from 25 crore in FY2019 to Rs.65 crore in FY2020. 

The PAT grew from 16.6 crore to 46.6 crore in FY2020 registering a growth of 179%. The net worth of the company thereby stood at Rs.513 crore. The company results have also shown a significant improvement in portfolio quality. Robust credit underwriting and collection efficiency has helped to build a superior loan book resulting in GNPA at 5 year low of 2.4% and NNPA at 2.1%. SHFL has also made an additional provision of Rs.10 crore for Covid related impact on its portfolio.

Mr. Ravi Subramanian, Managing Director & CEO, Shriram Housing Finance said, “We are happy that the market has shown confidence in us even during such challenging times. Despite the challenges, SHFL has always focused on getting new business without compromising on the portfolio quality and we look forward to work for the benefit of the society and our customers keeping in mind the current pandemic situation. Besides the debt raised so far, we also have NCDs in the pipeline. This only strengthens our belief that there is sufficient liquidity available for well managed companies.” 

Shriram Housing Finance Limited with over 65 branches across the country plans to tap the potent opportunity for cross-selling home loans. The company plans to leverage the Groups distribution strength (over 3500 branches across Shriram Transport & Shriram City Union Finance) to cater to the needs of the exclusive set of group customers.