CONNECT WITH US
Fintech

Fintech

Shriram Finance sees gold loan portfolio at Rs 11,000 crore by FY27 end: Umesh Revankar

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Shriram Finance sees gold loan portfolio at Rs 11,000 crore by FY27 end: Umesh Revankar

Shriram Finance sees gold loan portfolio at Rs 11,000 crore by FY27 end: Umesh Revankar

Shriram Finance expects its gold-loan portfolio to reach around Rs 11,000 crore by FY27-end from nearly Rs 9,000 crore currently. Executive Vice Chairman Umesh Revankar also spoke to ETBFSI about funding costs, deposits, securitisation, RBI rate transmission, asset quality and drought exposure.

* Gold-loan portfolio at around Rs 9,000 crore; target of Rs 11,000 crore by FY27-end. * Priority-sector securitisation remains one of the company's cheapest funding sources. * Deposits account for 31% of liabilities, with an average tenor of 42 months. * No immediate requirement for an equity raise; CRAR at around 32%. * Only 15% of the portfolio is floating-rate. * Tractor loans account for around 2% of the overall book. * No significant exposure to revolving-credit products. * Insurance-related fee income remains minimal.

Q: Where do you see the gold-loan portfolio by FY27-end? Umesh Revankar : We are growing it around 30% year on year on gold loans. So, we are at Rs 9,000 crore now. We should end up with around Rs 11,000 crore by the year-end. The gold-loan portfolio is still a relatively small part of our overall book. We are monitoring the asset quality closely and will continue to watch the portfolio as it grows. Q: What is your assessment of the impact of drought on the tractor-loan portfolio? Revankar: Tractor loans are around 2% of our overall book. Our exposure to the three drought-affected states is insignificant. Advt



Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.