Shriram Finance eyes 25 % growth in retail deposits

Chennai: India’s largest retail NBFC Shriram Finance is looking at a growth in retail deposits at 25% by 2030 and AUM growth at 15% in the next three years. The merged entity of Shriram Transport Finance Company and Shriram City Union Finance will also raise debt loans from bilateral institutes globally, while foraying into new products such as supply chain finance and educational loan segments.
Briefing reporters at a press conference here on Thursday, Umesh Revankar executive vice chairman said, the NBFC was preferring a strong retail growth.“Our combined retail deposits is 32,000 crore, which is 20% of our book. As far as the deposit growth, we are targeting a 25% growth by 2030,” he said. There was a 25% growth in deposits this year over the last year, he added.
“The cost of long term international liabilities what we are raising, it has a hedging cost as a part. So, it should be anywhere between 8.4 to 9.2 including hedging cost,” added Revankar.
To a query on competition from fintechs, Revankar said, “We will have a fintech partner as an enabler rather than looking at them as a disrupter.” Shriram Finance is also looking upgradation of credit rating from the present AA+ to AAA, he added. Y S Chakravarti, MD & CEO, Shriram Finance said, the NBFC’s Assets Under Management (AUM) is over 1.7 lakh crore, which is expecting a combined AUM growth of up to 15%. “We will be launching the supply chain funding segment with a AUM of 10,000 crore next month. Also, we will be entering into the educational loan vertical with a AUM of 5,000 crore to 6,000 crore,” he said.