Wheel of Finance in Motion

We all know how much under-served rural India is when it comes to banking and allied services. While filling such a gap targeting those with no credit history is indeed courageous, the returns too are in the line of risks undertaken. Ask Shriram Transport Finance Company (STFC), which, with its humble inception in 1979, is today the largest asset financing NBFC with Assets Under Management (AUM) of Rs 39,260 crore as on December 31, 2011. The company enjoys a leadership position in organized financing of pre-owned trucks with strategic presence in 5- to 12-year-old trucks and a market share of around 20-25 per cent. It has a 7-8 per cent market share in the new Commercial Vehicle (CV) financing space too where it capitalizes on its existing customer base upgrading to new trucks. It also helps to be a part of the parent Shriram Group which has presence in sectors as varied as engineering, IT, automobile, pharma and realty, among others. Strengths The unique and well-executed relationship based business model has attracted several investors-both strategic and portfolio.Shriram

This article was originally published on April 27, 2012.