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 & Shriram Transport Finance Company Raise Record Retail Fixed Deposits worth INR 2,000 Cr in July 2021
Mumbai, August 10, 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.
FIXED DEPOSIT Rates- Amount <= Rs. 5 Crore (SHRIRAM CITY & STFC.) w.e.f. 1st August 2021 | ||||||
Non-cumulative Deposits | Cumulative Deposit | |||||
Period (months) | Monthly % p.a | Quarterly % p.a | Half yearly % p.a | Yearly %p.a | Effective yield % p.a. | maturity value for Rs 5000/- |
12 | 6.31 | 6.35 | 6.40 | 6.50 | 6.50 | 5325 |
24 | 6.54 | 6.58 | 6.64 | 6.75 | 6.97 | 5695 |
36 | 7.25 | 7.30 | 7.37 | 7.50 | 8.08 | 6210 |
48 | 7.34 | 7.39 | 7.46 | 7.60 | 8.51 | 6700 |
60 | 7.48 | 7.53 | 7.60 | 7.75 | 9.05 | 7260 |
Additional interest of 0.30% p.a for Senior Citizens
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.”
About Shriram City Union Finance
Shriram City Union Finance (Shriram City; BSE: SHRMCITY, NSE: SHRIRAMCIT), a 35-year-old company and part of the Shriram Group, is one of India’s leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 4.3 Million customers and has an Asset Under Management of around USD 4 Billion. The Company is a leading Two wheeler financier, provides loans to SMEs, Gold loans and also has a Housing Finance Subsidiary, Shriram Housing Finance Ltd with an AUM of USD 525 Million. Shriram City has 926 branches and employee strength of 25,000 across India as of 30 June 2021. The companies Long Term credit rating is at AA and FDs are AA+ by CRISIL, ICRA, India Ratings and CARE. Shriram City has been named one of the Best Place to Work in India in 2021 by AmbitionBox, an Info Edge subsidiary.
About Shriram Transport Finance Co. Ltd.
Shriram Transport Finance Co Ltd. (STFC; BSE: 511218, NSE: SRTRANSFIN), a 42-year-old company and one of the largest Asset Financing NBFC in India. The company is a leader in the organized financing of pre-owned trucks with strategic presence in 5-10-year-old truck lending. The company has over 2.11 Million customers with Assets Under Management of USD 16 Billion. The company has strong competencies in the areas of loan origination, valuation of pre-owned trucks and collection. Products include, Pre-owned CV financing, New CV financing and other loans like accidental repair loans, tyre loans and working capital finance, etc. STFC has a pan-India presence with a network of 1,821 branches, and employee strength of 24,192 as of 30 June 2021. The companies Long Term credit rating is at AA+ and FDs are AAA by CRISIL, ICRA, India Ratings and CARE. Shriram City has been named one of the Best Place to Work in India in 2021 by AmbitionBox, an Info Edge subsidiary. Sustainalytics has rated STFC as “Medium risk” of experiencing material financial impacts from Environmental, Social, and Corporate Governance (ESG) factors.
About Shriram Group
Shriram Group is India’s leading financial conglomerate with a dominant presence in commercial vehicle (CV) financing, retail financing, chit fund, equipment financing, housing finance, life insurance, general insurance, stockbroking, distribution of financial products, and wealth advisory services. The Group focuses on serving the underserved and is driven by its Financial Inclusion agenda of bringing finance to low-income families and small businesses. Shriram Capital Limited is the holding company for the Financial Services (Shriram City Union Finance, Shriram Housing Finance Ltd. & Shriram Transport Finance Limited) and Insurance entities (Shriram General Insurance & Shriram Life Insurance) of the Shriram Group, created with the primary objective of optimizing the synergies across the Group’s entities.
Shriram Group together has an overall customer base in excess of 21.5 Million, around 74,500 employees across 3,950 branches. Net profit of INR 49 billion with Assets Under Management (AUM) of over INR 1.75 trillion (FY21).
