Shriram City, STFC raise record retail FDs worth Rs 2,000 crore in July

Shriram City has a large, active customer base of 4.3 million spread across 926 branches

Shriram City Union Finance (Shriram City), a Chennai-based two-wheeler financing non-banking financial company (NBFC), and Shriram Transport Finance Company (STFC), one of the country’s largest asset financing NBFC, have raised record retail fixed deposits (FDs) worth Rs 2,000 crore in July 2021.

Attractive interest rates, large customer base of 6.4 million, proven track record of over 20 years of issuing FDs and digitally enabled systems along with the Covid-induced need for security led to the record FDs raised by Shriram City and STFC, both part of the Shriram Group.

Shriram City raised retail FDs worth Ra 390 crore, while STFC raised Rs 1,610 crore in July — the highest-ever funds raised from retail FDs for both entities. In Q1FY22, Shriram City witnessed retail FD growth of 33% to Rs 5,761 crore while STFC saw 49% growth to Rs 17,903 crore, said a release jointly issued by the companies.

Shriram City has a large, active customer base of 4.3 million spread across 926 branches. Top three states for Shriram City are Tamil Nadu, Andhra Pradesh and Telangana. It has 94% of its branches located in rural and semi-urban locations. Public deposits comprise 22% of the company’s borrowings.

YS Chakravarti, MD & CEO of Shriram City, said: “We are constantly working on providing our customers better products, be it on the credit or deposit side, and it is reassuring to see how many customers choose to place their hard-earned money with us. The rates offered by the Shriram Group entities are one of the most attractive in the industry, and backed by a strong parentage it makes for a great investment, especially for risk-averse investors.”

STFC has a strong customer based of 2.1 million spread across 1821 branches. Top three states for STFC are Maharashtra, Tamil Nadu and Delhi. STFC has 88% of its branches located in rural and semi-urban locations. Public deposits comprise 17% of the company’s borrowings.

Umesh Revankar, vice-chairman & MD, STFCL, said: “At Shriram Transport we have invested extensively in the way we do business digitally, which has the potential to draw deposits and service loans from a broader pool of potential customers. Above everything, it’s the long-standing positive relationships, strong brand awareness and loyalty, along with the fact that we are firmly established within the communities we serve that is bearing fruit.”