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Shriram Finance Targets ₹20,000 Crore Gold Loan Portfolio, Expands EV Financing
Sentiment: NeutralHigh Priority
What Happened?
Shriram Finance aims to grow its gold loan portfolio to over ₹20,000 crore in two years, increasing its share from 2.5% to 5% of total assets. The company also expects significant growth in its electric vehicle financing.
Key points
- Shriram Finance's gold loan book currently represents 2.5% of its overall assets under management (AUM).
- The company aims to increase this to 5% within two years, targeting ₹20,000 crore.
- Monthly disbursements for EV financing have risen from ₹30-40 crore to ₹350 crore.
- Automobile financing constitutes about 75% of Shriram Finance's total AUM.
- The company is exploring partnerships with e-commerce firms for EV sales.
- Last year, MUFG Bank acquired a 20% stake in Shriram Finance for $4.4 billion.
Key insights
- The growth in gold loans may attract more customers seeking financial security.
- Increased EV financing aligns with the global shift towards sustainable transportation.
- Partnerships with e-commerce could broaden Shriram Finance's customer base.
Why it matters
The expansion in gold loans and EV financing could enhance Shriram Finance's market position and profitability.
Tags
Entities
Shriram Finance· CompanyUmesh Revankar· PersonMUFG Bank· OrganizationMitsubishi UFJ Financial Group· OrganizationSuzuki· CompanyToyota· CompanyHonda· CompanyYamaha· Company
Source
Business Standard
