Latest news with #UmeshRevankar
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Business Standard
25-04-2025
- Business
- Business Standard
Shriram Finance Q4 net profit up 6%, board clears foray into payments biz
Shriram Finance, one of the largest non-banking financial companies in India, on Friday reported a 6 per cent increase in its consolidated net profit to ₹2,143.77 crore in the fourth quarter of the financial year 2024-25 (FY25), compared to ₹2,021.28 crore in the year-ago period. The quarter saw a one-time exceptional gain of ₹1,553.66 crore on account of disinvestment of Shriram Housing Finance. During the period under review, the company's total income also zoomed 21 per cent to ₹11,460.25 crore as against ₹9,497.85 crore during Q4FY24. Shriram Finance also said that the board has approved the plan to foray into the payments business by offering mobile wallets and prepaid cards, as part of its diversification. 'Approved the proposal to offer payment services through mobile wallets, prepaid cards (Food Card, Gift Card), and FASTag, providing a secure, convenient, and efficient alternative to cash transactions for our customers,' the company said. This will be subject to receipt of necessary approval from the Reserve Bank of India and receipt of authorisation as a Payment System Operator. Through this, the company will be competing with One97 Communications' Paytm, Walmart's PhonePe, and the biggest non-bank lender, Bajaj Finance. 'We are not competing with anyone. This is like part of our existing business only to cater to the needs of around 10 million existing customers. Our super app already has 14 million downloads,' said the company's Executive Vice-Chairman Umesh Revankar. The flagship company of the diversified conglomerate Shriram Group is set to cross ₹3 trillion in assets during the current financial year with loan growth of 15 per cent, Revankar said. The company's board also recommended a final dividend of ₹3 per share for the financial year 2024-25, subject to approval of members at the ensuing 46th AGM. Total Assets Under Management as on March 2025 increased by 17.05 per cent and stood at ₹2.63 trillion as compared to ₹2.25 trillion as on March 2024 and ₹2.54 trillion as on December 2024. 'This fiscal, I am looking at 15 per cent growth. The rural market is good. Urban demand, led by infrastructure spend that had slowed down last year, may revive this year,' he added. The Board of Directors of the company, in its meeting held on May 13, 2024, had approved the disinvestment of the company's entire stake in SHFL for ₹3,929.03 crore. The Net Interest Income for the year ended March 2025 increased by 15.99 per cent and stood at ₹22,835.09 crore as against ₹19,686.85 crore for the year ended March 2024. For FY25, the company's net profit was seen at ₹9,576.32 crore, up 29 per cent from ₹7,398.89 crore previous year.
Reuters
11-02-2025
- Business
- Reuters
Indian non-bank lender Shriram Finance eyes 20-fold growth in green portfolio, exec says
MUMBAI, Feb 11 (Reuters) - Indian non-bank lender Shriram Finance ( opens new tab aims to boost its green portfolio 20-fold over the next three years as it diversifies its loan book, a top official said on Tuesday. "We are planning to add solar panels and similar sectors to our portfolio," Executive Vice Chairman Umesh Revankar said in an interview. Shriram Finance aims for a green financing book of 50 billion rupees (about $576 million) against about 2.5 billion rupees to 3 billion rupees right now, which comprises small-ticket two-wheeler and three-wheeler vehicle loans. Green finance, which is financing of businesses that support environmentally friendly and sustainable projects, has struggled to pick up in India due to limited awareness, high transaction costs, and limited access to affordable green technologies. The government provides tax incentives and subsidies for renewable energy projects, which make them more attractive to lenders. For Shriram Finance, the electric vehicle and battery segments are likely to grow given the new offerings in the market, Shriram Finance's Revankar said. The non-bank finance company aims to double its overall loan book as well as its assets under management (AUM) by 2030, he said. Shriram's total loans stood at 2.51 trillion rupees at December-end while the AUM was at 2.54 trillion rupees. Assets under management should rise 15% in both the current and next financial years, the official said, as the firm focusses on medium and small enterprises while issuing more vehicle and tractor loans, Revankar said. "We want to understand those (small) businesses, the ability to repay and how to manage collections," he said. "We want to grow this business at a minimum 20% next year onwards." Small business loans made up nearly 14% of Shriram Finance's AUM in the October-to-December quarter, while commercial and passenger vehicle loans made up about 46% and 20%, respectively. Shriram Finance may look to tap the dollar bond route for at least $750 million in the next fiscal year depending on market conditions, Revankar said.
