New Delhi, May 14 (IANS): In a reaffirmation of its belief in the affordable and mid segment housing, Shriram City Union Finance has invested Rs 200 crore in its housing finance subsidiary, Shriram Housing Finance Ltd (SHFL).
The board of Shriram City Union Finance has also approved an investment of upto Rs 500 crore into SHFL over the next two years, Rs 200 crore of which has been invested now.
The current infusion of Rs 200 crore will increase SCUF's holding in SHFL to 81.16 per cent from existing 77.25 per cent. The funds will be used to provide growth capital to the fast growing HFC and enable it to expand its distribution network and customer base.
The networth of Shriram Housing Finance, which was at Rs 576 crore as of March 31, 2021, goes up to Rs 776 crore with this investment.
In the recently declared Financial Results for FY 21, Shriram Housing Finance has reported a growth in its AUM of 70 per cent YoY, with the highest-ever quarterly and yearly disbursements of Rs 1,005 crore and Rs 2,195 crore respectively. The company ended FY 21 with PAT of Rs 62.4 crore, a strong 34 per cent growth for the year. The ROA stands at a healthy 2.5 per cent.
Shriram Housing Finance Managing Director & CEO Ravi Subramanian said: "We are happy to get incremental growth capital of Rs 200 crore from our parent. This capital infusion will help us expand our business and support our growth plans for the next 12-15 months. We have had a great FY21 and with this capital at our disposal, we expect to ride out the second wave of the pandemic and come out stronger in FY 2022."
"We have always focused on growing our business without compromising on quality and we look forward to continue doing the same. SHFL has forever stayed loyal to its mission of helping people own their dream home," he added.
Shriram Housing Finance Ltd, a Housing Finance Company registered with the National Housing Bank (NHB) and promoted by Shriram City Union Finance Ltd, commenced operations in December 2011. It is amongst the fastest growing, profitable and affordable Housing Finance Company with a network of 80 plus branches.