Press Release II Shriram City Union Finance Ltd. declares December 2020 results
Shriram City Union Finance Ltd. declares December 2020 results
Mumbai, January 29, 2021: Leading Small Business financier Shriram City Union Finance Limited (Shriram City) has declared its results for the quarter and nine months ended December 2020 of Financial Year 2021.
In a strong quarter, disbursements more than doubled sequentially. SME loans, new Two Wheeler loans, and Gold loans which together comprise almost 89% of the loan book saw sequential disbursement growth rates of 186%, 133%, and 24% respectively. New Two Wheeler loan disbursements were at their highest ever. Gold loan disbursements were at their highest in fifteen quarters. Assets under Management rose by 3.7% sequentially. Loan yields further improved to 20.53% (versus 19.99% in the previous quarter and 19.84% a year ago). Standalone Net Profit was higher by 8.9% sequentially. Asset quality continued to improve steadily, with Gross Stage 3 levels at 6.46% (versus 6.67% in the previous quarter and 8.51% a year ago). Credit costs were lower by 38 basis points than last quarter’s levels. Borrowing costs moderated further, and Net Interest Margin at 13.09% was the highest in eight quarters. Subsidiary Shriram Housing Finance Ltd., registered their highest-ever quarterly disbursements, having grown 54.1% year-on-year and 15.1% sequentially. Assets under Management for Shriram Housing grew 49.4% annually and 12.9% over the last quarter.
Mr. Y.S. Chakravarti, MD& CEO, Shriram City Union Finance said, “This has certainly been one of our better quarters in recent times. However, Q3 was the festival season quarter which usually sees us perform strongly. We will now endeavor to keep up the momentum gained. The quarter saw us scale up our lending across products, and we continue to see further headroom in lending to segments critical to the economy, such as MSMEs. This quarter too saw us further improve our asset quality. Our Housing Finance subsidiary continues to forge ahead, and registered their highest ever disbursements in Q3.”
About Shriram City Union Finance Ltd. (BSE: SHRMCITY, NSE: SHRIRAMCIT): The thirty-four-year-old Shriram City Union Finance Ltd. is among the more important players in the retail financing space. The company is among the largest financiers of MSMEs and Two Wheelers in the country. It also offers multiple loan products for acquiring assets such as commercial vehicles, passenger vehicles, and homes. In addition, it offers loans against gold ornaments and for personal consumption. A deposit-accepting NBFC, Shriram City is a part of the over Rs. 1 Lac crore Chennai-based Shriram Group.
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