Shriram Transport eyes Rs 42,000 cr AUM in two years

27 Jun 2011 Evaluate

Shriram Transport Finance Company is eyeing assets under management (AUM) worth Rs 42,000 crore in next two years with bulk of business originating from pre-owned truck finance. The company is expecting roughly 70% of business coming from truck finance operations. In the last four years, the AUM of Shriram Finance grew three-fold from Rs 12,092 crore in 2006-07 to Rs 36,182 crore in 2010-11.
 
Shriram Finance, which finances trucks between 2 and 12 years old, is expecting that the market of pre-owned commercial vehicles would grow by 15-20% annually. It intends to expand its marketing network by entering into partnership with private financiers across India involved in commercial financing. Besides truck finance, the company is also keen on growing its loan book from other emerging segments like lending to commercial equipment, multi-utility vehicles, three wheelers, tractors and passenger commercial vehicles. The company has already floated Shriram Equipment Finance to look after the new segment.
 
Southern India is the major market for truck finance business for Shriram as 30% of its business comes from this market only, followed by 25-30% from west, 15-20% from north and rest from east. The Gross NPA of the company stood at 2.66% while its net NPA was 0.38% of its total loan in 2010-11.

Shriram Finance Share Price

2887.15 15.40 (0.54%)
23-Dec-2024 13:49 View Price Chart
Peers
Company Name CMP
Bajaj Finance 6881.05
Shriram Finance 2887.15
Aditya Birla Capital 187.15
SBI Cards AndPayment 694.50
Mah & Mah Finl. Serv 266.75
View more..
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.