Indian non-banking lender Shriram Finance is planning to raise up to $1.5 billion from international markets during the current fiscal year as part of its strategy to diversify its borrowing sources. Y S Chakravarti, CEO and Managing Director of the company announced this target, indicating that the funds will be raised through a mix of loans and bonds.
This move comes in response to a recent directive from India’s central bank, which required lenders to allocate more capital against loans extended to non-banking financial companies (NBFCs) like Shriram Finance. This regulatory change has increased the cost of raising funds domestically, prompting the company to seek capital from overseas sources.
Shriram Finance is the country’s one of the biggest retail NBFCs offering credit solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, and personal and small business loans. They are part of the 49-year-old Shriram Group, a financial conglomerate that has emerged as a trusted partner in creating transformative experiences and lasting impressions in customers’ lives.
In November 2022, Shriram Group’s entities – Shriram Transport Finance Company Limited, Shriram City Union Finance Limited, and Shriram Capital Limited – merged to form Shriram Finance Limited. As of June 30, 2024, with a network of 3,095 branches and a workforce of 75,813, Shriram Finance has combined Assets Under Management (AUM) worth ₹ 233,443 crores.
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