Shriram Finance, the cornerstone of the Shriram Group’s diverse portfolio, is on track to surpass ₹3 lakh crore in assets in the upcoming financial year, which begins on April 1. The company anticipates a robust 15% loan growth in FY26, contingent on a 6.5% increase in GDP. Umesh G Revankar, the Executive Vice Chairman of Shriram Finance, noted that typically, loan growth outpaces GDP growth by more than double, suggesting that a flourishing economy will drive higher loan demand.

Projected Asset Growth

In discussing the asset book target, Revankar expressed confidence that it would exceed ₹3 lakh crore by FY26, with expectations of closing the current financial year above ₹2.5 lakh crore. This year, Shriram Finance is projected to achieve an impressive 18% credit growth, surpassing the initial 15% guidance. Revankar emphasized that if economic conditions improve, the company could potentially achieve even greater growth levels, stating that 18% credit expansion is feasible if GDP growth exceeds 6.5%.

Focus on Sustainable Financing

The company’s strategy includes a strong emphasis on financing for micro, small, and medium enterprises (MSMEs), alongside a commitment to green financing initiatives, particularly in the electric vehicle sector. This diversification highlights Shriram Finance’s dedication to sustainable growth and innovation within its lending practices.

Major Funding Milestones

Earlier this month, Shriram Finance successfully secured $306 million in funding from a consortium of multilateral and bilateral development financial institutions, including the Asian Development Bank (ADB). This funding, obtained under the company’s Social Finance Framework, included participation from notable global financial institutions such as the Japan International Cooperation Agency (JICA) and the Exim Bank of India. This transaction is part of Shriram Finance’s strategy to enhance its leadership in structured finance and sustainable funding.

• This year, the company has raised over $2.8 billion in offshore funding, solidifying its prominent position in the financial market.
• Noteworthy past transactions include a $500 million loan through External Commercial Borrowing (ECB), backed by SACE, an Italian export credit agency, and a landmark $1.2 billion syndication facility completed in December.

With these robust financial strategies and a clear focus on growth, Shriram Finance is well-positioned to achieve its ambitious targets and continue leading in the evolving financial landscape.