Latest News | Picked Up Significant Pace with Improving Conditions for MSME Segment: Shriram City Union Finance

Chennai, Apr 30 (PTI) Non-banking finance company Shriram City Union Finance Ltd started the financial year 2021-22 on a slow note but managed to pick up significant pace with improving conditions for micro, small and medium enterprises, a top official said on Saturday.

The company had reported a rise in its disbursements for the financial year ending March 31, 2022 to Rs 28,879 crore and Rs 8,645 crore for the quarter ending March 31, 2022.

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"Within the MSME space, we largely cater to the trading community and they have rebounded with the pick-up in activity, thus spurring demand for MSME credit," Shriram City Union Finance, Managing Director and CEO, Y S Chakravarti said.

According to him, the rise in disbursements was backed by a strong revival for the MSME, gold and two-wheeler loan segments.

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On a standalone basis, Shriram City Union reported a profit after tax at Rs 303 crore for the quarter under review as against Rs 282 crore recorded in the corresponding period last fiscal.

On the performance of its subsidiary Shriram Housing Finance Ltd, the company said its Assets Under Management (AUM) grew to Rs 5,355 crore during the quarter ending March 31, 2022.

The AUM growth was backed by widening the distribution network to 200 touchpoints of the Shriram Group in FY22 and also due to rising demand for affordable home finance.

Chakravarti said the company ramped up the personal loan book and also succeeded in the loan against gold in the south and expanded footprint in the north. "Our subsidiary, Shriram Housing Finance's AUM crossed Rs 5,300 crore and has now become one of the top five largest affordable housing financiers in India," he added.

Shriram Housing Finance grew by 43 per cent Compounded Annual Growth Rate (CAGR) in the last three years and the company has set a target to grow at double the industry growth rate in FY23, he said.

Shriram City Union has over 4.55 million customers and has an AUM of around Rs 385.4 billion. It has 986 branches and an employee base of 27,997 across the country as of March 31, 2022, the statement added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)