Shriram Finance expects a faster growth in MSME and two-wheeler loans, said the lenders' management in its Q1FY25 analyst conference call on July 26.
MSME loans and two-wheeler financing are projected to grow by over 20 percent and between 15 percent to 18 percent, respectively. Meanwhile, its vehicle finance segment is expected to maintain a steady growth rate of around 12 percent.
The company also foresees an increase in the used commercial vehicle and passenger vehicle markets in the coming years.
Shriram Finance anticipates stable cost of funds over the coming quarters, with an expected rate near 9 percent, said the management. The lender said that their focus is on retail deposit securitization, which is one of the cheapest source of funds for them. "We also have large offshore borrowing program and that will continue to be tapped as and when opportunities arise," said Umesh Revankar, Executive Vice Chairman, Shriram Finance.
Revankar also said that he is in ongoing dialogues with rating agencies to secure a credit rating upgrade, citing strong business performance, asset diversity, and smooth merger processes as positive indicators.
Shriram Finance reported a net profit of Rs 2,031 crore for Q1FY25, a 18.6 percent YoY increase from the previous fiscal.
Revenue from operations surged 22 percent to Rs 9,362.79 crore, up from Rs 7,687.95 crore in the previous year.
Net Interest Income (NII) for the quarter was Rs 5,234 crore and the Net Interest Margin (NIM) dropped to 8.79 percent from 9.02 percent in the previous fiscal.
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