Shriram Finance plans to raise $1 bn from overseas in next 6 months

To fund its business growth, the NBFC raises resources from diversified sources like public deposits, bank finance and raising money from domestic markets.

By Connect Gujarat Desk 08 Sep 2024 in Business

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Shriram Finance plans to raise $1 bn from overseas in next 6 months

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NBFC Shriram Finance plans to raise $1 billion (about Rs 8,300 crore) from overseas in the next 6 months to fund its business growth.

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The fund raise would also include loans from development financial institutions like Asian Development Bank, Kfw, and United States Development Finance Corporation (DFC). The timing would depend on market conditions, he added.

To fund its business growth, the Non-Banking Financial Company (NBFC) raises resources from diversified sources like public deposits, bank finance and raising money from domestic markets.

On the loan growth, Chakravarti said, it is expected to increase 15 to 16 per cent during the current financial year.

The company's Assets Under Management (AUM) stood at Rs 2.33 trillion at the end of June 2024. Disbursement in Q1 FY25 aggregated to Rs 37,710 crore as against Rs 30,455 crore in Q1 FY24.

The Reserve Bank of India (RBI) in November 2023 asked all lending entities to set aside more capital on loans given to NBFCs. This made fund raising from banks costlier especially for smaller NBFCs.