Transport Company STFC India's largest financier of commercial vehicles, and City Union Finance, the largest two-wheeler financer, has been merged to form Shriram, which will be India s largest retail-focused non-banking financial company, said on Monday. Shriram Finance will have a net worth of Rs 40,900 crore, AUM of 1,71, 000 crore and more than 6.7 million customers. The company said it will serve the self-employed and micro, small and medium enterprises. MSME - Umesh Revankar, a veteran, is executive vice chairman of the merged entity. It is the culmination of a journey of 43 years. The balance sheet strengthened through the merger allows us to serve the needs of the market better than ever before. As a customer-focused company, we can bring more products and help them get access to credit faster. Revankar said that we are looking forward to an exciting phase of double-digit growth.
The merger timing is brilliant. As India is growing, we are seeing strong demand for credit among MSMEs. We have over 3600 locations and we are always close to the market. All our business segments - financing commercial vehicles, MSMEs, personal loans, gold loans, or vehicle loans -- are poised to grow, said Y S Chakravarti, managing director and chief executive officer of Shriram Finance.
Shriram Finance has announced the appointment of Jugal Kishor Mohapatra as chairman and Maya Sinha as an independent director. The company was founded in 1979 and has more than 57,000 employees.
Last week, STFC said in a regulatory filing that it had changed its name to Shriram Finance on November 30. On November 23 the group announced that Shriram Financial Ventures Chennai SFVPL, the holding company of Shriram Capital SCL, will be the new group holding company. SFVPL is owned jointly by the Shriram Ownership Trust SOT and the Sanlam Group of South Africa.