Will the start of operations of small banking finance companies like Equitas Holdings provide a threat to the likes of Shriram City Union Finance and eat into their market share?
Subhasri Sriram, ED & CFO of Shriram City Union Finance, is confident that no such thing will take place; in fact she thinks it will create more market. The market is so large that even 5-6 such players will not eat into each other’s market share, she adds.
Talking on the competition with Equitas Holdings which is based in Chennai, she says for Shriram City Union Finance the business in Tamil Nadu is less than 30 percent. The segment they operate in also varies. Shriram caters more to two-wheelers, small business loans, personal loans etc and so, does not see Equitas as a competition right now.
There is need for more players in the market to give more knowledge to customers, she says.
The ticket size of their loans is between Rs 5 to 50 lakh, says Sriram, adding that the bank as of now has seen growth in disbursement across all products including gold.
Non-performing assets, too, are not a worry as of now, says Sriram.
For the entire conversation, watch video