Shriram Finance Guides For 20% Asset Growth For FY24, Says CEO
The company faces the hurdle of pushing net interest margin beyond 9%, and guides for NIMs of 8.5-9% going ahead, YS Chakravarti says.
Shriram Finance Co. expects 20% growth in assets under management for fiscal 2024, according to Chief Executive Officer and Managing Director YS Chakravarti.
It sees 15–18% AUM growth for the next couple of years, buoyed by a resilient economy, he told NDTV Profit.
70% of the non-banking finance company's portfolio focuses on automobile finance. It expects the passenger vehicle segment to outstrip commercial vehicle growth, Chakravarti said.
"We are going to focus on vehicle loans, wherein growth in passenger vehicles would be stronger than commercial vehicles. We will also look to grow MSME and gold loans," the CEO said.
Digging into financial metrics, the company faces the hurdle of pushing the net interest margin beyond 9% and guides for NIMs of 8.5–9% going ahead.
Chakravarti said that the operating and credit cost ratios will trend lower. "The long-term goal is to maintain credit costs at 2%. We will be able to achieve that in the next financial year," he said.
Shriram Finance highlighted the need for a Rs 1,000–1,500 crore capital raise in its subsidiary, Shriram Housing Finance Co. The move aims to support the subsidiary's growth target of 30–35%.
A Rs 1,000 crore fundraise should help take care of growth requirements for 1.5–2 years, Chakravarti said. "We are exploring options to bring in some private equity investors on board. Nothing is finalised as of yet."
