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Updated on: Monday, August 30, 2021, 08:27 PM IST

Shriram City Union Finance looks to disburse up to Rs 23,000 cr in FY22

PTI
During the first quarter of 2021-22, Shriram City Union Finance disbursed Rs 4,560 crore compared to Rs 6,570 crore in March 2021 quarter/ Representational image |

During the first quarter of 2021-22, Shriram City Union Finance disbursed Rs 4,560 crore compared to Rs 6,570 crore in March 2021 quarter/ Representational image |

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Chennai-based non-banking finance company Shriram City Union Finance (Shriram City) is eyeing total disbursements of Rs 22,000-23,000 crore in the current financial year, a top company official said.

During the first quarter of 2021-22, it disbursed Rs 4,560 crore compared to Rs 6,570 crore in March 2021 quarter.

The lender's managing director and CEO Y S Chakravarti said July 2021 was better than June with disbursements crossing Rs 3,000 crore. Even the collection efficiency had touched closed to 100 per cent in July compared to 93 per cent in June.

"On an average it (disbursements) is around Rs 6,200-6,300 crore per quarter. In the remaining three quarters, we expect to touch about Rs 18,000-19,000 crore. For the financial year, we should end up with Rs 22,000-23,000 crore (of disbursements)," Chakravarti said.

The lender provides finance to segments including small and medium enterprise (SME), two-wheelers, personal loans, gold loans and loan against property.

Chakravarti said the company is seeing good demand from SME and gold loan segments and will continue to focus on growing the book there.

"We went slow on SME (financing) for the last one-and-a-half years. It has come down from 55 per cent to close to 49 per cent right now. The idea is to take it back to 55 per cent," Chakravarti said.

Another major segment for the lender is two-wheeler financing, which is around 26-27 per cent of its total loan portfolio. He expects to disburse around Rs 1,500-1,600 crore in the two-wheeler segment in the second quarter of current fiscal.

In the quarter ended June 2021, the lender reported a profit after tax of Rs 208 crore as against Rs 192 crore in the year-ago period. Its asset quality improved year on year, with gross stage 3 levels at 6.91 per cent in Q1 FY22 compared to 7.28 per cent in the corresponding quarter of the previous fiscal.

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Published on: Monday, August 30, 2021, 08:27 PM IST
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