Shriram Finance to grow its retail fixed deposits by 25%

One of the country’s largest non-banking finance company (NBFC) Shriram Finance Ltd plans to grow its fixed deposits from the current Rs 32,000 crore and talks are on to raise long term funds from international markets, said Umesh Revankar, Vice Chairman.According to him, the merged company will now look at personal finance and loans to micro, small and medium enterprises (MSME).He also said turning into a bank with the merger of two other group NBFCs will not be profitable owing to maintenance of statutory liquidity ratio (SLR) for first four years, increased salaries to the staff and reduction in the net interest margins (NIM).It may be recalled that commercial vehicle financing major Shriram Transport Finance Company, two-wheeler and MSME financier Shriram City Union Finance and Shriram Capital Ltd have been merged to form Shriram Finance.After the merger Shriram Finance, is a diversified player with a net worth of Rs 40,900 crore and Assets under Management (AUM) of Rs 1,71,000 crore catering to over 6.7 million customers across India.