MUMBAI: The largest vehicle financing company Shriram Finance has reported an 11.39% on-year growth in standalone net profit at Rs 2,307.18 crore for the quarter to September aided by higher interest income and steady loan growth.
The key net interest income for the quarter printed in at 11.77% at Rs 6,266.84 crore, the company said in an exchange filing Friday.
Higher loan sales lifted the overall assets under management by 15.74% to Rs 2,81,309.46 crore in the reporting period, compared to Rs 2,43,042.55 crore in the year-ago period. Sequentially, the loan book rose from Rs 2,72,249.01 crore.
The board declared an interim dividend of 240%, or Rs 4.80 per share, with the record date set as November 7.
Additionally, the board also approved a resource mobilisation plan to raise funds through bond sales or subordinated debentures between November and January.
Following the announcement, shares of Shriram Finance gained 3.6% to Rs 765, after hitting an intraday high of Rs 768.70, as investors welcomed the steady operational performance and dividend payout.
The Mumbai-based company, established in 1979, is one of the largest retail asset financing non-banks with a strong presence across small businesses, vehicles, and personal loans. The company operates 3,225 branches and employs over 78,000 people serving 9.66 million customers.
