Date:28/04/2007 URL: http://www.thehindubusinessline.com/2007/04/28/stories/2007042803592100.htm

Back Shriram Finance plans expansion in Kerala

Our Bureau

Kochi April 27 Shriram City Union Finance Ltd, a leader in Kerala's two-wheeler auto finance segment, is poised to expand its operations to three-wheeler, passenger car and enterprise financing in the State.

With a turnover of Rs 114 crore last year, Shriram City Union would be a clear market leader for the two-wheeler segment in the State, Ms Subhasri Sriram, Executive Director, Shriram City Union, said at a press conference.

Capital Mobilisation

Some of the other prominent players in the two-wheeler finance segment are ICICI Bank and Centurion Bank. The company with its network of 609 offices across the country had aggregate funds of Rs 2,000 crore last year.

The company also has over 35,000 active operational accounts. New generation entrepreneurs, especially the smaller entrepreneurs, invariably confront capital mobilisation problems in the initial phase of operations, Ms Sriram said.

This is because most banks and institutions do not encourage their application in the absence of good track record and collateral. Shriram City Union through its enterprise finance has found a niche in this market, which they will be extending to the first generation entrepreneurs in Kerala as well.

Disbursements

The company has its regional office in Kochi along with 19 offices spread across the State. Shriram City Union Finance, which had made fresh disbursements of Rs 1,800 crore last year, plans to double the disbursements this year.