Friday, January 27, 2023
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HomeNewsBusinessCity Union and Shriram Transport Finance have merged

City Union and Shriram Transport Finance have merged

Shriram Transport Finance Company, the largest lender of commercial vehicles, has announced a merger with Shriram City Union Finance, the leading two-wheeler financier and leader in micro, small, and medium enterprise (MSME) lending (Shriram Finance).

Umesh Revankar, a long-serving Shriram executive, will be appointed Executive Vice Chairman of the merged organisation. “It is the inevitable completion of a 43-year journey,” he said of the merger. We can better service the market’s needs now that our balance sheet has been reinforced by the merger. We can introduce more products and help them get credit faster because we are a customer-focused firm. We have made significant investments in technology to improve efficiency and customer service levels. We anticipate an exciting period of sustained double-digit growth.”

Shriram Finance will be a diverse operator, with a strong net worth of Rs 40,900 Crs and assets under management (AUM) of Rs 1,71,000 Crs, and would serve over 6.7 million clients across India. The self-employed and the MSME industry will be crucial to the Company’s growth strategy.

“The timing of the combination is brilliant,” said YS Chakravarti, MD & CEO of Shriram Finance. As India grows, so does the demand for financing among MSMEs. With over 3600 locations, we are always near to the market. All of our business areas, including commercial vehicle financing, MSMEs, personal loans, gold loans, and car loans, are ready to expand.”

Furthermore, the company announced its development strategy, Driving the Self-employed and Small Business Economy, and outlined five critical pillars to fuel future growth:

Shriram Finance also named Mr Jugal Kishor Mohapatra as Chairman and Mrs Maya Sinha as an Independent Director.

1. To be the most preferred place for financial services in the country.
2. Customers who are self-employed, small businesses, or new to credit should be given priority.
3. To capture a larger share of the wallet, diversify your product portfolio to include credit, insurance, and investment.
4. Produce an industry-leading Return on Asset (ROA) and Return on Equity over the long run (ROE).
5. Providing customer satisfaction in rural and semi-urban areas through the use of technology and empowered personnel

News Summary:

  • City Union and Shriram Transport Finance have merged
  • Check all news and articles from the latest Business news updates.


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