Shriram Finance Explores Yen Borrowing: Aiming for 17% Growth!

Shriram Finance, an Indian company that gives loans, is thinking about borrowing money in Japanese yen. This would help them borrow in different ways. CEO YS Chakravarti shared this news, saying they are still in the early stages of these discussions. He mentioned they might borrow from a bank or sell bonds that people can buy. Currently, loans from outside India make up about 15% of Shriram’s total loans, and overseas bonds are about 6.8%.

Recently, Shriram Finance got $1.28 billion from a multi-currency loan, which means they borrowed in different currencies like dollars, euros, and dirhams. On Friday, they announced their profits for the fourth quarter weren’t as high as expected because borrowing costs increased, causing their shares to drop by 9% on Monday.

Looking to the future, Shriram Finance aims to grow its assets under management (AUM) by about 17%-18% for the years 2025-2026, which is more than their earlier goal of 15%. As of March, their total assets grew by 17% from the previous year, reaching 2.63 trillion rupees (around $30.96 billion). They want to increase business by focusing on loans for cars and small businesses, and are also planning to introduce new loan products, like business loans without collateral.

Additionally, Shriram Finance has about 300 billion rupees in extra cash. This extra money can help them get better interest rates and lower their borrowing costs. The CEO believes that because they have this extra liquidity, they can negotiate better deals for loans in the future.