Shriram City Union Finance and Shriram Transport Finance raise record retail fixed deposits worth Rs2,000cr in July 2021

In Q1FY22, Shriram City witnessed Retail FD growth of 33% to Rs5,761cr, while STFC saw a growth of 49% to Rs17,903cr.

Aug 11, 2021 11:08 IST India Infoline News Service

Investment
Shriram City Union Finance Ltd. (Shriram City) and Shriram Transport Finance Company (STFC) both part of the Shriram Group raised record Retail Fixed Deposits (FDs) worth Rs2,000cr in July 2021. Attractive interest rates, large customer base of 6.4 Million customers, long track record of 20+ years of issuing FDs, digitally enabled systems, strong parentage and reputed brand name, along with the covid induced need for security led to the record FDs raised by Shriram City and STFC.

Shriram City raised retail FDs worth Rs390cr, while STFC raised Rs1,610cr in July 2021, the highest ever funds raised from retail FDs for both entities. In Q1FY22, Shriram City witnessed Retail FD growth of 33% to Rs5,761cr, while STFC saw a growth of 49% to Rs17,903cr.

Shriram City has a large active customer base of 4.3 Million customers spread across 926 branches. Top 3 states for Shriram City are Tamil Nadu, Andhra Pradesh and Telangana. Shriram City has 94% of its branches located in Rural and Semi Urban locations. Public deposits comprise 22% of the company’s borrowings.

STFC has a strong customer based of 2.1 Million customers spread across 1821 branches. Top 3 states for STFC are Maharashtra, Tamil Nadu and Delhi. STFC has 88% of its branches located in Rural and Semi Urban locations. Public deposits comprise 17% of the company’s borrowings.

Commenting on the record FDs Mr. Y.S. Chakravarti, MD & CEO, Shriram City said: “We are constantly working on providing our customers better products, be it on the credit or deposit side and it is reassuring to see how many customers choose to place their hard-earned money with us. The rates offered by the Shriram Group entities are one of the most attractive in the industry and backed by a strong parentage it makes for a great investment, especially for risk-averse investors.”

Mr. Umesh Revankar, Vice Chairman & MD, Shriram Transport Finance Company Limited said: “At Shriram Transport we have invested extensively in the way we do business digitally, which has the potential to draw deposits and service loans from a broader pool of potential customers. Above everything it’s the long-standing positive relationships, strong brand awareness and loyalty, along with the fact that we are firmly established within the communities we serve that is bearing fruit.”

FIXED DEPOSIT Rates- Amount <= Rs. 5 Crore (SHRIRAM CITY & STFC.)
w.e.f. 1st August 2021
Non-cumulative  Deposits Cumulative Deposit
Period (months) Monthly % p.a Quarterly % p.a Half yearly % p.a Yearly %p.a Effective yield % p.a. maturity value for Rs 5000/-
12 6.31 6.35 6.40 6.50 6.50 5325
24 6.54 6.58 6.64 6.75 6.97 5695
36 7.25 7.30 7.37 7.50 8.08 6210
48 7.34 7.39 7.46 7.60 8.51 6700
60 7.48 7.53 7.60 7.75 9.05 7260
Additional interest of 0.30% p.a for Senior Citizens

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