Shriram City Union Finance (SCUF) is planning to focus on the MSME (medium and small medium enterprises) sector, which could be the major growth engine for the company over the next few years.
Addressing persspersons here on Wednesday, G. S. Sundararajan, Managing Director, said the MSME segment with 2.60 crore units under the category was growing fast, contributing 17 per cent to the gross domestic product of the country. He said the company had classified the MSMEs as non-corporate borrowers constituting nearly 50 per cent of the company’s loan book.
According to Subhasri Sriram, Chief Financial Officer, the company posted a consistent growth of nearly 40 per cent in assets under management during the last five years driven mainly by small enterprises and under-banked semi-urban customers.
With 95 per cent of all industries coming under MSME segment, this would provide a huge opportunity for the company’s future growth. She said the company had posted a 13.5 per cent rise in its net profit at Rs. 117.42 crore in the first quarter ended June 30, 2013 against Rs. 103.42 crore in the same period in the previous year.
The total income from operations rose by 17.2 per cent to Rs. 788.37 crore from Rs. 672.58 crore in the year-ago period. The net interest income was Rs. 432.40 crore (Rs. 370.94 crore) with a net interest margin of 11.08 per cent as compared to 10.48 per cent in the year-ago period.