Shriram City Union Fin Q2FY22: Expect 15-16% AUM growth this fiscal, says management

On disbursements and AUM YS Chakravarti, MD & CEO of Shriram City Union Fin said, “This quarter was good and we have done about Rs 6400 crore of disbursement which should actually push up the AUM in the coming months. The last two quarters were not so great, except for this quarter. It is about 2.8 percent growth if you look at the quarter-on-quarter, it should stabilize around 3.50 percent going forward in two quarters. We should be ending the year anywhere between 15-16 percent growth on the AUM compared to last year.”

The company's asset quality continued to show improvement sequentially, with gross stage 3 levels (gross NPAs) at 6.86 percent (6.91 percent in Q1FY21 and 6.67 percent in Q2FY21), it said in a release. Credit cost too improved to 2.70 percent.

The restructured book stood at Rs 162 crore, representing 0.53 percent of AUM. The company has liquidity back up of Rs 4,178 crore as of Q2FY22 end, it said.

Chakravarti said, “The restructured loans are about 300 crore which is 1 percent of the AUM. As of today, we have probably about half a dozen accounts in 30 to 60 buckets. Other than that, they are all performing well.”

On the merger with Shriram Transport Finance, he said, “So nothing is fixed, the plan is on, we are working on it. I think it will take some more time before they can come back with a concrete proposal to each of the individual companies.”