Shriram Finance chief revamps portfolio to boost returns ratios.

TLDR:

• Shriram Finance is undergoing post-merger integration to enhance financial performance.
• Portfolio restructuring aims to improve return ratios and profitability.

YS Chakravarti, MD and CEO of Shriram Finance, discusses the progress of the merger between Shriram City Union Finance and Shriram Capital with Shriram Transport Finance. Integration efforts are ongoing, with a focus on introducing new products and training staff. The company has introduced gold loans at 600 branches, attracting customers and driving growth. While new vehicle loans are important, the company sees potential in used vehicle loans due to competitive pricing. Shriram Finance aims for an ideal portfolio mix, with a focus on diversifying products and improving return on equity and return on assets.

Chakravarti also addresses the challenges faced in pricing competitiveness and the impact on profitability. Shriram Finance is working towards improving return ratios and expects to reach an RoE of 16-16.5% and RoA of 3.50%, showcasing a positive outlook for the future.