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Shriram Finance Limited -India’s Largest Retail Finance NBFC’s AUM Touches INR 30,000 Cr in Tamil Nadu

  • Catering to the diversified needs of 10.6 lakh customers in rural and semi-urban India in the state of Tamil Nadu
  • The Assets Under Management (AUM) touched INR 30,000 Cr in the state
  • Announces the growth strategy – Driving the Self-employed and Small Business Economy


Chennai Dec 22, 2022 – Shriram Finance Limited (Shriram Finance), India’s largest retail NBFC announced today that the AUM of the company in Tamil Nadu touched INR 30,000 Cr. The growth has been on the back of an economic turnaround, rural markets revival and pick-up in infrastructural activity. This has in turn driven up demand for financing of commercial vehicles, micro, small and medium enterprises (MSME) and two-wheelers. Shriram Finance caters to the diversified financial needs of 10,60,000 customers through its 675 branches and over 12,000 employees in the state. The company has a large fixed deposit franchise in TN totalling over INR 4,290 Cr, with over 64,000 depositors. The growth strategy for the Company will be focused on driving the self-employed and the MSME economy.

Shriram Transport Finance Company, the largest financier of commercial vehicles, and Shriram City Union Finance, the largest two-wheeler financer and leader in micro, small and medium enterprise (MSME) lending, have recently been merged to form Shriram Finance Limited (Shriram Finance). Shriram Finance is a diversified player with a robust net worth of Rs 37,500 Cr and Assets under Management (AUM) of Rs 1,71,000 Cr, the Company caters to over 67 lakh customers across India (as of Sep-22).

Growth Strategy for Tamil Nadu: The top 5 products for the company in the region are financing of Commercial vehicles, MSMEs, Two-wheelers, Gold loans and Personal Loans. The company will provide financial services to the underbanked and underserved and expand its reach within this segment of customers. The focus will be to increase penetration among the self-employed segment, specifically those who lack formal income proof and need capital to expand their small businesses. The CV business will continue to be a special focus for Shriram Finance going forward, while the MSME business will now get a double fillip, as we extend the SME services to the transport ecosystem. The company will build ecosystem-wise specialisation within MSMEs and expect this segment to grow many folds. The Two-wheeler business is turning into a business funnelling proposition by channelizing self-employed individuals towards MSME products as well. Currently, with over 675 branches in Tamil Nadu, Commercial vehicle loans are offered in 450 branches, while 2W & MSME has been launched in all 675 branches and gold loan is offered in 375 branches. The plan is to add gold loans in 50 more branches, offer CV financing in 50 additional branches and private car financing in all 675 branches by March-23.

Mr Umesh Revankar, Executive Vice Chairman, Shriram Finance commented, “Shriram Finance is the lender to the Aam Aadmi and our strategy so far has been focused on the transportation industry, but going forward we are diversifying our product offering which will be focused on the self-employed and MSME segment. Within MSMEs, we will target the bottom of the pyramid which suffers from a high cost of credit and often lack timely access to capital. For 2-wheeler financing, we will concentrate on the self-employed segment, which is using the vehicles for employment, thus driving entrepreneurship.”

Mr P Sridharan, Jt MD, Shriram Finance speaking at the event said, “The 2 companies Shriram Transport & Shriram City have come together to form Shriram Finance and we will drive business in the state of Tamil Nadu based on our successful unique relationship model and will look to capitalise on each other’s potential in the next 1 year. Tamil Nadu is the largest contributor to Shriram Finance’s business and will continue to drive growth for the company. TN has been blessed with good governance and a development-focused government that has worked for the welfare of the people in TN with a long-term perspective.”

About Shriram Finance Limited

Shriram Finance Limited is India’s largest retail asset financing Non-Banking Finance Company (NBFC) with Assets under Management (AUM) of Rs. 1.71 trillion. Recently Shriram City Union Finance Limited and Shriram Capital Limited merged with Shriram Transport Finance Company Limited and was subsequently renamed Shriram Finance Limited. The Company is a leader in organised financing of pre-owned commercial vehicles and two-wheelers. It has a vertically integrated business model and finances several products, including passenger commercial vehicles, MSMEs loans to micro and small and medium enterprises, tractors, gold, personal loans and working capital loans, etc. Over the last 43 years, it has developed strong competencies in the areas of loan originations, valuations of pre-owned commercial vehicles and other assets and collections. It has a pan-India presence with a network of over 3,600 outlets and an employee strength of more than 57,000 servicing over 67 lakh customers.

About Shriram Group

Shriram Group is India’s leading financial conglomerate with a dominant presence in commercial vehicle (CV) financing, retail financing, chit fund, MSME financing, housing finance, life insurance, general insurance, asset management, stockbroking, distribution of financial products, and wealth advisory services. The Group focuses on serving the underserved and is driven by its Financial Inclusion agenda of bringing finance to low-income families and small businesses. Shriram Financial Ventures (Chennai) Private Limited is the promoter company for the Financial Services (Shriram Finance Limited and its subsidiary Shriram Housing Finance Limited) and holding company of the Insurance entities (Shriram General Insurance Company Limited & Shriram Life Insurance Company Limited) of the Shriram Group.

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