Shriram Group News: Shriram Group receives RBI nod for merger of financial services business

The Shriram Group has secured RBI approval for the merger of and Shriram Capital Ltd with in a consolidation set to create the biggest retail finance NBFC within the nation.

In a notice to the exchanges late on Wednesday, Shriram mentioned RBI issued its No Objection to the scheme of amalgamation by a letter dated June 15. In December final yr, the boards of varied group firms met to approve the merger of SCL and SCUF with STFC.

The RBI inexperienced sign counts amongst a raft of crucial approvals — the scheme has to safe nods from the IRDA and different regulators to

by. The mixed monetary service entity, Shriram Finance Ltd, would profit from the multiplier impact of the unification of quite a few market channels, and leverage information analytics to serve clients – counting over 2 crore by end-December 2021 – higher. “The merger would assist the group carry collectively all its lending merchandise – Business autos, Two-Wheeler Loans, Gold Mortgage, Private Mortgage, Auto Mortgage & Small Enterprise Finance – beneath a single roof, thereby making a monetary powerhouse which might find yourself being a market chief in all of the product and shopper segments that it operates in,” the corporate had mentioned in a press release final yr.

Already, Shriram group manages belongings price over Rs 1.8 lakh crore. For the mixed entity, STFC’s Govt Vice President and CEO Umesh Revankar can be the Vice-Chairman whereas Shriram Metropolis’s MD-CEO YS Chakravarti can be the MD & CEO, mentioned the assertion.

The Group had additionally mentioned it might sharpen concentrate on digital lending, with current and new monetary merchandise discovering distribution on a newly constructed tremendous app. Just lately, high executives mentioned the tremendous app can be unveiled by Q1 of subsequent fiscal.