Shriram City targets 40% disbursement growth in 2011-12

Shriram City Union Finance (SCUF) is targeting 40% growth in disbursement during the current fiscal despite the jitters in the economy.

"We are targeting an average disbursal of Rs 1,000 crore per month during the current fiscal. In 2010-11, our average disbursal was close to Rs 600 crore a month," Shriram Housing Managing Director Sujan Sinha said here today.

"There will be no major impact on our disbursement on our targeted segment of businesses like gold loan, second-hand auto loans and finance to small and medium enterprises. Moreover, we are targeting Tier-II and Tier-III cities and clients with difficulty in getting credit," he said.

 

The Chennai-based non-banking finance company has also lined up a Rs 750 crore non-convertible debentures issue opening on August 11.

With a face value of Rs 1,000 each, NCDs offers an annualised interest rate of 12.10% for a five year tenure.

The core issue size is Rs 375 crore, while it has an option to retain over-subscription of up to Rs 375 crore.

Moreover, it has a call and put option, that could be exercised after four years. An investor therefore could surrender his investment and the issuer could withdraw the issue after four years.