Shriram City Union Finance (Shriram City) has reported a net profit of Rs 349 crore for the second quarter of FY23, compared with Rs 282 crore in the corresponding quarter of last fiscal, logging a 24% growth. Revenues from operations went up by 24% to Rs 1,963 crore, against Rs 1,583 crore.

On a standalone basis Shriram City reported its best quarterly disbursements of Rs 8,020 crore, up 24.9%, while AUM rose by 18.7% to Rs 36,117 crore. Net interest income rose to a record Rs 1,231 crore, up 27%. The asset quality improved with gross NPAs declining 18 bps QoQ to 5.93% in Q2FY23. The company has a liquidity back-up worth Rs 4,559 crore as of the end Q2FY23.

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Small enterprise, gold and personal loan disbursements grew at the fastest pace with the pick-up in momentum in rural and semi-urban demand. Small enterprise finance contributed 42% of the total AUM and disbursements stood at Rs 2,129 crore. The company, the largest two-wheeler financer has witnessed strong loan disbursements from rural India.

Y S Chakravarti, MD & CEO, Shriram City, said: “Economic activity has picked up in 1HFY23 driving demand for credit from rural and semi- urban markets and we expect this momentum to sustain. The healthy operational performance of Shriram City has been driven by robust customer addition, new loans by small enterprises, all products added in Shriram Transport branches and aided by the digital ecosystem.

“Our subsidiary, Shriram Housing Finance’s AUM crossed Rs 6,500 crore and is today the fourth-largest affordable housing financer in India with strong growth prospects as it expands its distribution network across the merged entities. The integration for the merger is well underway and we are working as a single unit already.”

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The company has received approvals for the merger of Shriram City with Shriram Transport Finance from SEBI, BSE, NSE, shareholders, secured creditors, unsecured creditors, Competition Commission of India and the Insurance Regulatory & Development Authority. It now awaits the final approval of the amalgamation scheme from the National Company Law Tribunal.

In preparation to commence operations in the merged entity, Shriram City has launched the business as a merged entity across 1,200- plus branches and five geographical units. This endeavour is being scaled up progressively, the company added.