Shriram City Union Finance & Shriram Transport Finance Company Raise Record Retail Fixed Deposits worth INR 2,000 Cr in July 2021. Shriram City Union Finance Ltd. (Shriram City), a Chennai-based leading SME, Two-wheeler, Gold Financing Non-Banking Financial Company (NBFC), and Shriram Transport Finance Company (STFC), a Mumbai-based company, one of the country’s largest Asset Financing NBFC, both part of the Shriram Group raised record Retail Fixed Deposits (FDs) worth INR 2,000 Cr in July 2021.
Attractive interest rates, large customer base of 6.4 Million customers, long track record of 20+ years of issuing FDs, digitally enabled systems, strong parentage and reputed brand name, along with the covid induced need for security led to the record FDs raised by Shriram City and STFC.
Shriram City raised retail FDs worth INR 390 Cr, while STFC raised INR 1,610 Cr in July 2021, the highest ever funds raised from retail FDs for both entities. In Q1FY22, Shriram City witnessed Retail FD growth of 33% to INR 5,761 Cr, while STFC saw a growth of 49% to INR 17,903 Cr.
Shriram City has a large active customer base of 4.3 Million customers spread across 926 branches. Top 3 states for Shriram City are Tamil Nadu, Andhra Pradesh and Telangana. Shriram City has 94% of its branches located in Rural and Semi Urban locations. Public deposits comprise 22% of the company’s borrowings.
STFC has a strong customer based of 2.1 Million customers spread across 1821 branches. Top 3 states for STFC are Maharashtra, Tamil Nadu and Delhi. STFC has 88% of its branches located in Rural and Semi Urban locations. Public deposits comprise 17% of the company’s borrowings.
Commenting on the record FDs Mr. Y.S. Chakravarti, MD & CEO, Shriram City said: “We are constantly working on providing our customers better products, be it on the credit or deposit side and it is reassuring to see how many customers choose to place their hard-earned money with us. The rates offered by the Shriram Group entities are one of the most attractive in the industry and backed by a strong parentage it makes for a great investment, especially for risk-averse investors.”
Mr. Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance Company Limited said: “At Shriram Transport we have invested extensively in the way we do business digitally, which has the potential to draw deposits and service loans from a broader pool of potential customers. Above everything it’s the long-standing positive relationships, strong brand awareness and loyalty, along with the fact that we are firmly established within the communities we serve that is bearing fruit.”