The Shriram Group has a ‘real interest’ in making a foray into the banking field.
Indicating this in an interaction with this correspondent here on Tuesday, G. S. Sundararajan, Managing Director, Shriram Capital, the holding company of the group’s financial services businesses, said “We want to manage a bank.” He, however, hastened to add that the group’s banking dream hinged on the evolving regulatory environment, in the wake of a change in the mindset of policy planners at the Centre.
He said there was lot more financial inclusion in the business activities pursued by the group. Pointing to the difficulties in a merger option, Mr. Sundararajan said the group was keen to get into the banking field with the blessings of the Reserve Bank of India.
He said the Shriram Group was also keen to get into non-chit areas (that is, where it does not have its chit operations) to expand its gold loan and small enterprise portfolios.
The gold loan portfolio of the group (through Shriram City Union Finance) was worth Rs. 600 crore, he said.
On loans to small enterprises, he said “it is more a community lending.” Over a period, the group would like to weave this small enterprise loan portfolio around its chit business. This would provide lot more security and comfort for the group as it would be lending to clients who were known to it.
Asked if Shriram Capital would tap the market, he replied in the affirmative. But that would take a few years, he added. In any case, the dilution would not be more than 20 per cent, he said.
