India's Shriram Finance mulling yen-denominated fundraise to diversify borrowing, CEO says
Shriram Finance
is mulling raising funds denominated in
Japanese yen
to diversify its borrowing profile, with talks still in preliminary stages, its CEO said on Monday.
"Our team is exploring a possibility if we can borrow from the Japanese (
currency
)," YS Chakravarti told Reuters in an interview. "This could be either from a bank or an international bond issue, which corporates can subscribe to."
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
10 Things Flight Attendants Rarely Talk About, Plus Tips to Make Your Flights More Comfortable
Enhancing In-Flight Comfort
Undo
Shriram Finance
is "still exploring the market", Chakravarti said, without divulging the target or timing of the fundraise.
External commercial borrowing loans made up nearly 15% of Shriram's total borrowing profile as of March-end, while overseas bonds comprised about 6.8%.
In December, the
NBFC
raised $1.28 billion in a multi-currency social
loan
split across the dollar, euro and dirham, with a tenor of up to five years.
Live Events
On Friday, Shriram Finance reported a smaller-than-expected fourth-quarter profit as high finance costs pressured its bottom line. The company's shares fell as much as 9% on Monday.
Shriram Finance is targeting
AUM
growth of around 17%-18% for 2025-26, higher than its earlier guidance of 15%, Chakravarti said.
As of March-end, Shriram Finance's
assets under management
(AUM) increased by 17% year-on-year and stood at 2.63 trillion rupees ($30.96 billion).
The NBFC is looking to bank on its passenger vehicle and small and medium enterprise
loan portfolios
to drive its AUM growth, the CEO said, while also exploring new products, such as unsecured
business loans
and supply chain financing.
Shriram Finance is also looking to deploy the excess liquidity of about 300 billion rupees on its balance sheet, which will help drive net interest margins in the 8.50%-8.80% range for the current financial year, compared with 8.25% in January-March, Chakravarti added.
"Since we are sitting on excess liquidity we will be in a position to actually bargain for an attractive rate. We see our cost of borrowings to trend lower from current levels," he added.
($1 = 84.9550 Indian rupees)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
38 minutes ago
- Time of India
AI-driven UP a tech model in many spheres
Lucknow: Uttar Pradesh is fast emerging as a leader in shaping the country's future through Artificial Intelligence. The state govt has integrated AI into governance, education, agriculture, security, and healthcare, creating new benchmarks in public welfare. From initiatives like 'AI Pragya' to 'UP Agris' and plans to develop Lucknow as an AI City, UP is building a robust digital economy focused on transparency, productivity, and efficiency in citizen services. Aligning with Govt of India's Vision 2047, the state's AI policy and skill development programmes highlight that UP is not just a consumer of technology but an emerging hub of innovation. AI is fast becoming the backbone of governance and development in Uttar Pradesh. By integrating AI into youth-centric policies, agriculture, education, and public services, the state is fostering a future-ready, tech-savvy population. The state government is working on a draft AI policy in line with Vision 2047. Through AI bootcamps, officials from 30 departments have been trained to use AI effectively in government processes. To make the Direct Benefit Transfer (DBT) system more accurate and transparent, AI-based fraud detection and data analytics have also been introduced in some areas. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like TV providers are furious: this gadget gives you access to all channels Techno Mag Learn More Undo Under the IndiaAI Mission, a massive AI ecosystem worth Rs 10,732 crore is being developed in Lucknow. This investment is 67% higher than any other technology infrastructure in the country. Additionally, an AI-based traffic management system is being proposed for Lucknow, while Varanasi is already in the process of implementing an AI-enabled smart traffic system. Under AI Pragya, more than 10 lakh youths, teachers, gram pradhans, government employees, and farmers are being trained in AI, machine learning, data analytics, and cybersecurity in partnership with tech giants like Microsoft, Intel, Google, and Guvi. In 17 municipal corporations and Gautam Budh Nagar, AI-powered systems such as CCTV surveillance, facial recognition, number plate tracking, and SOS alert systems have been implemented. These are directly integrated with 112 helpline and police control rooms. Under UP Agris Project, launched with World Bank support and an investment of Rs 4,000 crore, 10 lakh farmers are being connected to AI-based technologies. In Revenue Department, satellite imaging and AI algorithms are being used for land consolidation and record management. In healthcare, the country's first AI-based breast cancer screening center has been established in Fatehpur. tnn
Time of India
an hour ago
- Time of India
New-Age lending model helping banks to cut costs and meet customer expectations
Across global financial markets, lending is experiencing a major shift. Borrowers now expect immediacy, personalization, and simplicity in every interaction—whether applying for a personal loan on their mobile device or financing a home, vehicle, or business. However, many banks and financial institutions are hindered by systems designed for a slower, less connected world. A World Bank report estimates that micro, small, and medium enterprises face an annual credit gap of USD 5.2 trillion—about 1.5 times the current lending volume for these businesses. With conversations from banks and lenders, it's clear: Legacy Loan Origination Systems are no longer adequate. They were built to standardize, not to innovate. They offer control—but make it hard to adopt changes. Today, with tech-savvy customers and constantly changing rules, this lack of flexibility has become a drawback. According to a market research, digital lending platforms in India are projected to reach over 500 million customers by the end of 2025, with the lending segment expected to hit USD 1.3 trillion in disbursements, driven by advancements in financial technology and increased smartphone penetration. Hence, what is needed is not just digital enhancement, but a fundamental reinvention of how lending is delivered, scaled, and evolved. This is where the model of Lending-as-a-Service is proving to be a game-changer. Lending-as-a-Service redefines lending not as a static software platform, but as a flexible, cloud-powered ecosystem. It enables lenders to break down the lending process into modular services that can be rapidly configured, deployed, and scaled across various product lines—from personal and auto loans to corporate, housing, and consumer durable finance. By adopting this model, financial institutions are no longer bound by one-size-fits-all workflows or long development cycles. They gain the agility to experiment, personalize, and adapt without overhauling their core architecture. But technology alone is not the differentiator—it's the outcomes that matter. Institutions supported with platforms with Lending-as-a-Service architecture have consistently accelerated their go-to-market timelines, dramatically improved customer satisfaction, and reduced operational costs. We've seen banks launch new retail lending products in a matter of days. We've seen journeys that once required manual underwriting transformed into straight-through processes powered by AI. In several deployments, the cost per loan has reduced by over half, while conversion rates have increased multifold. For instance, a leading financial services provider in India leveraged our platform to launch a digitally native loan journey for Indian customers, covering onboarding, KYC, credit scoring, and disbursal—all within a few days. Another bank in Southeast Asia reimagined its auto finance journey by integrating real-time approvals, e-KYC, and government API linkages into a seamless customer flow. These institutions weren't just digitizing—they were building lending businesses designed for today's customers and tomorrow's challenges. This transformation is also enabling compliance readiness at scale. In regulated markets such as the UAE, India, and Southeast Asia, stakeholders are able to quickly embed policy changes, update product terms, or roll out pre-approved offers—without recoding, retraining, or retesting legacy systems. Thus, the future of lending will belong to those who are agile, responsive, and deeply aligned with the needs of their borrowers. Lending-as-a-Service offers a pathway to that future—a model that is not only more adaptive but also more resilient in the face of change. At the core of this shift is a new generation of lending platforms — modern, unified lending infrastructure built for speed, scalability, and intelligence. To illustrate, our platform, built on a microservices-based, cloud-native foundation, enables institutions to launch and iterate with confidence. With the ability to integrate more than 175 APIs, our ecosystem supports real-time connectivity with internal banking systems, fintech partners, government APIs, credit bureaus, fraud detection engines, and compliance tools. Additionally, this allows banks and financial institutions to no longer be constrained by what their systems can support—they are empowered to lead with what their customers demand. The transformation is not incremental. It is structural. And it is happening now. It's time to reimagine lending and reinvent success. By Ravish Pandey, Head of Product Innovation, and Sachin Gupta, Head of Client Accounts and Engagement at BUSINESSNEXT AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
an hour ago
- Time of India
Rlys approves final survey for Neemuch-Banswara-Dahod line
Indore: The ministry of railways approved the preparation of a Detailed Project Report (DPR) for the final survey of the 380-kilometre-long Neemuch-Banswara-Dahod-Nandurbar new rail line. "This is a significant move aimed at fostering the economic and social development of the tribal-dominated regions," Ratlam railway division PRO Khemraj Meena said. "This project is set to create a new, vital route connecting Delhi to Mumbai," Meena added. According to railway minister Ashwini Vaishnaw, the tribal-dominated Banswara naturally connects with Dahod. Therefore, a decision was made to prepare the DPR for the Neemuch-Banswara-Dahod rail line alongside the Dungarpur-Banswara-Ratlam project, Meena said. He added that this line will provide a new route for trains travelling from Delhi to Mumbai, passing through the tribal-dominated Banswara region. This will be the shortest route connecting the Tapti section to the Mumbai-Delhi main route via Dahod. The new rail line is expected to benefit six cities across Madhya Pradesh, Rajasthan, and Gujarat. The city of Shahada, with a population exceeding 50,000, may also be included in the survey for this route. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ask A Pro: "I'm 70 with $1.4M in IRAs. Should I convert $120K/Year to a Roth?" SmartAsset Undo Meena further explained that Rajasthan's Banswara district, a hilly region rich in mineral resources, currently lacks connectivity to the Indian Railways network. The area is abundant in minerals, presenting a strong potential for freight transportation, which can be facilitated by the shorter Neemuch-Banswara-Dahod route. Dahod-Alirajpur-Nandurbar section is located in a hilly and tribal area. This will be a shorter route connecting the Tapti rail section to the high-density Mumbai-New Delhi main line at Dahod. This route is also expected to uplift communities deprived of mainstream development, connecting them to the rest of the country via rail. Furthermore, this new rail line will boost tourism in Rajasthan, Madhya Pradesh, and Gujarat, while also creating local employment opportunities, he said.
