Shriram City Union Q1 net up 16% at Rs 148 cr

Net interest income increased by 14.6% to Rs 573 crore in the quarter

Non-banking financial company Shriram City Union Finance today reported a 15.6 per cent rise in its net profit at Rs 148 crore in the quarter ended June, 2015, helped by higher interest income and reduction in expenses.

The company had reported a profit after tax of Rs 128 crore in the same period last year.

"We had good growth in AUM in the third and fourth quarter of last fiscal which helped in improving our interest income in this quarter. Our expenses also came down by 4-5 per cent during the period," company's Director G S Sundararajan said.

Net interest income increased by 14.6 per cent to Rs 573 crore in the quarter.

Assets under management (AUM) stood at Rs 17,483 crore, with the small enterprise finance portfolio comprising the largest share at 53.5 per cent.

The retail lending arm of Shriram Group is expecting a loan growth of 14-15 per cent in the current fiscal.

He said lower cost of borrowing during the quarter also helped the rise in interest income.

Its cost of funds reduced by 20 basis points to 10.89 per cent as of June 30.

The gross non performing assets stood at 3.17 per cent as against 3.12 per cent in the quarter ended March 2015.

The company plans to raise Rs 7,000-8,000 crore during 2015-16 through banks, non convertible debentures and debentures, among others routes.