The largest two-wheeler financier has seen strong credit disbursement from rural India.
Shriram City Union Finance (Shriram City) has reported a net profit of Rs 349 crore in the second quarter of FY 2013, registering a growth of 24% as compared to Rs 282 crore in the corresponding quarter of the previous financial year. Revenue from operations grew by 24% to Rs 1,963 crore as against Rs 1,583 crore.
On a standalone basis, Shriram City reported its best-ever quarterly disbursement of Rs 8,020 crore, a growth of 24.9%, while AUM grew by 18.7% to Rs 36,117 crore. Net interest income rose 27% to Rs 1,231 crore. Asset quality improved with gross NPAs declining 18 bps QoQ to 5.93% in Q2 of FY23. The company has a liquidity back-up of Rs 4,559 crore as of the end of Q2FY23.
Small enterprises, gold and personal loan disbursements grew at the fastest pace, driven by pick-up in rural and semi-urban demand. Small Enterprise Finance contributed 42% of the total AUM and disbursements stood at Rs 2,129 crore. The largest two-wheeler financier has seen strong credit disbursement from rural India.
YS Chakraborty, MD & CEO, Shriram City, said: “Economic activity in 1HFY23 has driven demand for credit from rural and semi-urban markets and we expect to sustain this momentum. Shriram City's healthy operating performance is aided by strong customer additions, fresh loans by small enterprises, all products added at Shriram Transport branches and digital ecosystem.
“The AUM of our subsidiary, Shriram Housing Finance, crossed Rs 6,500 crore and is today the 4th largest affordable housing financier in India with strong growth prospects as it expands its distribution network across the merged entities. The amalgamation for the merger is going well and we are already working as a single entity."
The company has received approvals from SEBI, BSE, NSE, shareholders, secured creditors, unsecured creditors, Competition Commission of India and Insurance Regulatory and Development Authority for the merger of Shriram City with Shriram Transport Finance. It is now awaiting the final approval of the amalgamation plan from the National Company Law Tribunal.
In preparation for commencing operations in the merged entity, Shriram City has commenced business as a merged entity with over 1,200 branches and five geographic units. The company said that this effort is being progressively scaled up.
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