Virendra Singh Rawat / Lucknow
Private sector finance company Shriram Finance Limited is targetting a loan book of Rs 20,000 crore in Uttar Pradesh in the next three years.
The non-banking financial company (NBFC) is bullish on the micro, small and medium enterprises (MSME) and the two-wheeler finance segments going forward.
According to the company, the Assets Under Management (AUM), which stood at Rs 10,770 crore (end Sep 22 quarter) in UP, is aimed to hit the mark of Rs 20,000 in three years. UP is the third largest market for the NBFC.
Shriram Finance executive vice chairman Umesh Revankar said the company’s growth strategy focussed on the MSMEs since UP possessed the largest number of registered MSMEs in India, and thus the potential to offer institutional finance is large.
The growth is being triggered by an economic turnaround, rural market revival and pick up in micro and small businesses activity.
This has stoked the demand for financing of two-wheelers, commercial vehicles and MSMEs. Shriram Finance caters to the diversified financial needs of over 0.6 million customers through 150 branches and 5,000 odd employees in UP, a press communiqué read.
Besides, Shriram Finance is looking at 25-30 percent growth in its gold loan book, which is currently to the tune of Rs 4,500 crore pan-India, in the next one year.
Of the nationwide network of 3,600 Shriram Finance branches, only 1,200 branches offered gold loans, which would be expanded in the coming quarters and years.
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The gold loan book of the country’s private sector finance companies excluding the commercial banks is estimated to be worth Rs 75,000 crore. This also excludes the mammoth gold loan transactions in the informal sector at the local level.