Merged entity Shriram Finance eyeing upgraded ratings in next 1-2 quarters

Shriram Finance had 2,875 branches across India as on September with assets worth Rs 1.7 lakh crore under management.

FPJ Web DeskUpdated: Wednesday, December 07, 2022, 11:49 AM IST
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Image credit: Shriram Finance

After unfying three group entities through a merger, Shriram Finance is slated to emerge as the second-largest player among retail Non-Banking Finance Companies (NBFCs). The new entity expects its credit ratings to be raised in a couple of quarters, after which its costs will go down by 40-basis-points, according to media reports.

The upgrade will mean that the firm rated AA+ will become an AAA-rated company, thanks to diversification of assets. Shriram Finance emerged as a single entity, from the merger of Shriram City Union Finance and Shriram Capital with Shriram Transport Finance.

About Rs 30,000 crore of liabilities of Shriram City Union will be repriced at ratings a notch higher, to reduce borrowing costs. Shriram Finance had 2,875 branches across India as on September with assets worth Rs 1.7 lakh crore under management.

The firm has been growing at a rate of 15% annually when it comes to assets under management.

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