Shriram Finance sees a good traction in its business and expects the overall vehicle finance business to grow by 15-20% compared to last year.
The NBFC is currently managing electric vehicle finance business of Rs300 crore a month.
During a media interaction on Tuesday, Umesh Revankar, executive vice chairman at Shriram Finance, said, “The exact traction in overall vehicle finance will be known once Ganesh Chaturthi festivity starts. But our assumption is that the segment will grow 15-20% compared to last year. On the EV finance segment, our business has grown from `50 crore per month to `300 crore across two, three-wheeler, commercial vehicle, cars and solar rooftop panels.”
He further said there is “absolutely no delinquencies” in the EV business for the NBFC.
Shriram Finance’s overall growth plan is focused on MSME and vehicle loan financing and expand gold loan business. India’s second-largest NBFC expects the credit growth in India at 14-15% and the growth would be around 18%. “The thumb rule is that the credit growth will grow two-times of GDP. There will be bigger opportunity for NBFCs because they are able to innovate. With regard to Shriram Finance, in first quarter we grew at 15% and this quarter also growth will around 15%. Our target for the overall credit business growth is 18%.”
The Mumbai-based NBFC is planning to open nearly 100 new branches and recruit 2,000-3,000 in 2026. Shriram Finance operates 3,225 branches across India.
“As we have received funding from MUFG, we want to invest that into the business and grow faster. Last year, we were focusing on expanding our digital presence and bring out new products.” In Tamil Nadu, Shriram Finance has 843 branches, of which 147 are in Chennai and its nearby region. Tamil Nadu handles 15-16% of total AUM of `45,000 crore of the NBFC.
Shriram Finance is launching new products such as supply chain financing, bill discounting, inventory financing and term loan for dealers who want expand their businesses. “These products are different from traditional products that we offer.”