As part of the pilot cross-selling initiatives prior to the merger of Shriram group NBFCs, the branches of Shriram Transport Finance Company (STFC) have started selling gold loan products. Kickstarting the process, the group has launched gold loan in one STFC branch in Kerala which will in the next 15-20 days be extended to another 15-20 branches of the state, parts of Karnataka, Chhattisgarh and Madhya Pradesh.
The teams are getting trained and by the end of August, the group would be offering gold loans in about 100 plus branches of STFC, Y S Chakravarti, MD & CEO, Shriram City Union Finance (SCUF), told an analyst meet recently. The proposed merger of Shriram City Union Finance (SCUF) and Shriram Transport Finance Company (STFC) will lead to the birth of Shriram Finance. The group has made a significant progress in the matter of statutory and regulatory approvals. The merger has been green-lighted by Sebi, stock exchanges, Reserve Bank of India, shareholders and secured and unsecured creditors.
“We also received a go-ahead from the Insurance Regulatory and Development Authority of India (Irdai) so as of now what is pending is a clearance from the Competition Commission of India and the National Company Law Tribunal,” he said. According him, they are hopeful of these approvals coming in over the next couple of months. He said the most crucial would be the National Company Law Tribunal (NCLT) because that is where the time they are going to take some time, “ But we are hopeful that by the end of September we should get the NCLT order in hand. So I would say we stand committed to our original road map that by end of either September or at best by October we should be a legal entity,” he said.
In the interim, the group has begun the process of assigning responsibilities to geographical unit heads and their immediate juniors, besides orienting the business teams of both Shriram City and Shriram Transport to the products. “The integration of IT systems is also progressing well and thus we will be able to hit the ground running as a merged unit when we are in a position to announce the final merger,” he said.