Shriram Finance bets on green financing, targets Rs 5,000 cr AUM in 3 years

Shriram Finance Ltd, the flagship company of the Shriram Group, has kicked off its green financing vertical this quarter by launching it in Karnataka and Kerala. A top company executive said on Monday that the company is all set to expand into Delhi-National Capital Region (NCR), Maharashtra, and Madhya Pradesh soon and has set a target of achieving an asset under management (AUM) of Rs 5,000 crore for this vertical by 2028.

 

The company has not only partnered with electric vehicle (EV) manufacturers but is also in talks with solar cell makers, charging infrastructure stakeholders, and others to boost the vertical.

 

 

The green financing vertical will finance EVs, renewable energy products, energy-efficient machinery, and other sustainable solutions.

 

“It is not just EVs; we are doing green finance, including electric vehicles, charging stations, and rooftop solar panels. We have just launched this in Karnataka and Kerala. We will shortly launch it in Delhi-NCR, Maharashtra, and Madhya Pradesh,” said Y S Chakravarti, managing director and chief executive officer of the company.

 

“We are doing this phase-wise, carving out a team from our existing employees, reaching out to solar cell manufacturers and charging station service providers. We have already tied up with all two-wheeler and four-wheeler original equipment manufacturers (OEMs) in the EV sector. We are also reaching out to operators of electric buses and fleet operators looking to buy electric trucks,” Chakravarti added.

 

The company unveiled the new vertical in December.

 

“For the first year, we have not set any specific target. At least three years from now, we expect around Rs 5,000 crore in terms of AUM from this vertical,” Chakravarti added.

 

During the third quarter, the company registered disbursement growth of 16 per cent year-on-year. Its disbursements in Q3 FY25 aggregated to Rs 43,766.27 crore, up from Rs 37,787.84 crore in Q3 FY24.

 

Its AUM as of December 2024 registered a growth of 19 per cent year-on-year and 4.7 per cent sequentially, reaching Rs 2.54 trillion, up from Rs 2.14 trillion during the same period last financial year.

 

The company earned net interest income of Rs 5,822.69 crore in Q3 FY25, compared to Rs 5,093.93 crore in Q3 FY24.