Shriram City Union Finance Ltd Clocks New High in

 Shriram City Union Finance Ltd. Clocks New High in Two Wheeler Loans

·         The company financed over 1.66 Lakh Two Wheelers in November 2020

·         Disbursements in excess of Rs. 1000 Crore in November 2020

Retail financing major Shriram City Union Finance Ltd. has reported having financed over 1.66 Lakh Two Wheelers in November 2020, representing disbursements of slightly over Rs. 1000 Crore in November itself. This is a new high for the lender. Shriram City had also financed over 1 Lakh Two Wheelers in October 2020, and counts among the largest such financiers in the country by volume.

Mr. Y.S. Chakravarti, MD & CEO, Shriram City Union Finance Ltd. said “The festival months have generally always seen Shriram City scale up its Two Wheeler financing business, but this year’s performance has been particularly pleasing as it comes on the back of a prolonged lockdown. After having financed over 1 Lakh vehicles in October, our teams did even better in November, and we funded almost 1.67 Lakh Two Wheelers in the month. 

Our performance in November also has to be considered from the perspective that we financed 10.41% of the number of Two Wheelers sold in the country in the month.”

Shriram City Union Finance Ltd declares

Shriram City Union Finance Ltd. declares June 2020 results

 Leading Small Business financier Shriram City Union Finance Limited (Shriram City) has declared its results for the first quarter of Financial Year 2021.

In a quarter affected by the Covid-19 pandemic, there was only a relatively slower decline in Assets under Management (lower by 6% annually and 2% sequentially). The Two Wheeler loan book grew 10% higher year-on-year. Standalone Net Profit, although lower by 24% year-on-year was up 26% sequentially. Operating Expenses were substantially reduced (lower by 18% annually and 20% sequentially), and accordingly, Operating Profit was higher 10% Q-o-Q. Asset quality continued to improve, with Gross Stage 3 levels at 7.28% (161 bps lower than a year ago and 62 bps over the last quarter). 

Loan impairments and write offs were steady at last quarter’s levels. Subsidiary Shriram Housing Finance Ltd., despite considerably lower disbursements in the quarter registered a growth of 23% in Assets under Management over last year. Shriram Housing also registered, at 2.3% GS3, it best asset quality in the last five years.

Mr. Y.S. Chakravarti, MD & CEO, Shriram City commented “We are glad to report that we are gradually returning to Business-as-Usual mode, with all our offices currently being operational. Disbursements began in some strength in June, and we hope to increase business traction in a calibrated manner in the rest of the year. We made excellent progress in cost control in the quarter, and hope to sustain the practices leading to this development.”

Shriram City Union Finance Ltd. declares

Shriram City Union Finance Ltd. declares Fourth Quarter
and FY20 results

Leading Small Business financier Shriram City Union Finance Limited (Shriram City) has declared its results for the fourth quarter and Financial Year 2020.

Standalone disbursements in FY20 were lower by 5.6% and Assets under Management by 1.7%. However, disbursements in the flagship product of MSME loans grew 24.9% on a sequential basis. Standalone Net Profit, although lower by 39.1% in Q4 versus the previous year on account of enhanced Covid-19 related provisioning was up 1.2% for the year. Asset quality continued to improve, with Gross Stage 3 levels at 7.90% (compared to 8.91% a year ago and 8.51% last quarter). Subsidiary Shriram Housing Finance Ltd. registered a healthy performance, growing its Assets under Management by 24.7% over last year and 9.7% over the last quarter. Disbursements grew 48.5% annually and 3.6% sequentially. Disbursements for the quarter at Rs. 400 Crore were the highest ever for the Company. Net Profit for the year was higher by 179%. The subsidiary also registered, at 2.4% GS3, it best asset quality in the last five years.

Mr. Y.S. Chakravarti, MD & CEO, Shriram City Union Finance, said, “This was yet another rollercoaster of a year, with Covid-19 dampening business sentiments at the very end of the fiscal. However, Shriram City is adequately geared to deal with the challenges that will emerge in FY21. Together with our subsidiary we are strong on liquidity and recovery, and these are major determinants of success in the NBFC and Housing Finance industries.”

About Shriram City Union Finance Ltd. (BSE: SHRMCITY, NSE: SHRIRAMCIT): The thirty four year old Shriram City Union Finance Ltd. is among the more important players in the retail financing space. The company is among the largest financiers of MSMEs and Two Wheelers in the country. It also offers multiple loan products for acquiring assets such as commercial vehicles, passenger vehicles and homes. In addition, it offers loans against gold ornaments and for personal consumption.  A deposit-accepting NBFC, Shriram City is a part of the over Rs. 1 Lac crore Chennai-based Shriram Group.