Companies

Shriram City Union eyes ₹25,000-cr biz in five years

KR Srivats New Delhi | Updated on November 25, 2017

GS Sundararajan, MD, Shriram City Union Finance

Sees MSMEs making up two-thirds of overall loan book

Shriram City Union Finance (SCUF), the largest small business financing company in the country, is eyeing an overall loan book of ₹25,000 crore in the next five years, its Managing Director GS Sundararajan said.

This non-banking finance company’s overall loan book size currently stands at ₹16,000 crore, of which 50 per cent is accounted for by loans to micro, small and medium enterprises (MSMEs).

“We are keen to expand our MSME lending to two-thirds of overall loan book in the next five years,” Sundararajan told BusinessLine here.

He said that the Government could give a fillip to small business financing in the country if this activity was brought under priority sector lending. This will help companies such as SCUF to get funds at a lower cost from the banking system, Sundararajan said. SCUF is also keen on doubling its gold loan portfolio in the next few years, he said, adding that there was adequate demand for such products in south India.

Currently, SCUF’s gold loan portfolio is at about ₹3,000 crore.

The NBFC is also active in two-wheeler financing, with a loan exposure of ₹3,000 crore in this segment.

Sundararajan said that SCUF was not looking to raise any equity capital (tier-I) for the next three years. “We are adequately capitalised and comfortable to fund next three years’ business growth,” he said.

Published on July 08, 2014

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