Longer forbearance will help in conversion to a bank, says Y S Chakravarti

We are not going in for external funding. We have decided that SCUF will fund them, says Shriram Group MD

Shriram City Union Finance (SCUF) has seen a big rebound in its business — collections are up sharply, and the book under moratorium is only at seven per cent. The deposit-accepting shadow bank is at an inflexion point, given the emerging regulatory framework, with the Shriram Group set to revisit its banking ambitions. Y S CHAKRAVARTI, the firm’s managing director and chief executive officer, spoke to Raghu Mohan. Edited excerpts:

What explains the big bounce in your business in the third quarter of FY21 at 27 per cent year-on-year, and will it sustain, going forward?

Small borrowers got squished, particularly businesses dependent