Shriram Transport net up 44% led by loans

Mumbai: Vehicle financier Shriram Transport Finance reported a 44% increase in net profit led by strong loan growth, which increased net interest income.

Net profit increased to ₹1,086 crore in the quarter ended March 2022 from ₹755 crore a year ago on the back of a 22% increase in net interest income (NII) to ₹2,628 crore in the quarter ended March 2022 from ₹2,151 crore a year ago.

Total assets under management increased 8% to ₹1.27 lakh crore from ₹1.17 lakh crore a year ago. Net interest margins, the difference between the interest earned by the company on loans and that paid on deposits, expanded to 6.96% from 6.80% a year ago.


Asset quality improved as the gross 90 days past dues as a percentage of total loans decreased to 7.07% from 8.40% reported in December. The company said it had moved to classify loans based on daily overdue which has had an impact on provisions and profits.

The company carries provisions on 50% of its loans which are due past 90 days.

For the year ended March 2022 net profit increased 9% to ₹2,708 crore from ₹2,487 crore led by a 14% increase in net interest income to ₹9,316 crore.