Shriram Finance taps MUFG ties to scale dealer, EV and consumer-durables lending
Shriram Finance will use MUFG Bank’s corporate relationships to expand dealer, inventory and supply-chain finance across vehicle and consumer-durables ecosystems. The lender is also targeting faster growth in MSME, passenger-vehicle, gold and EV loans, with mid-sized corporate lending set to begin in October.
What happened
Shriram Finance plans to leverage MUFG Bank’s corporate relationships for dealer, inventory and supply-chain finance across India’s consumer-durables and
Key facts
- MUFG Bank acquired 20% of Shriram Finance for ₹39,618 crore in April
- Shriram Finance AUM: ₹3,13,798 crore
- Capital expected to support 18–20% annual growth until around 2030
- CRAR: around 34%; operating threshold around 20%
- 3,225 branches
- Mid-sized corporate loan ticket size: ₹30–40 crore
- MSME share of loan book: 13%, targeted at 20–22% by 2030
- Passenger-vehicle financing growth target: 20–22% annually
- Commercial-vehicle financing growth target: 12–15% annually
- Two-wheeler financing growth target: around 15% annually
- Gold-loan book: around ₹8,000 crore, targeted at ₹20,000 crore in three years
- Vehicle-finance share of AUM: 69%, projected at 64–65% by 2030
- EV lending: ₹250 crore per month, targeted at ₹500 crore monthly within about a year
- EV receivables: around ₹2,500 crore, targeted at ₹5,000 crore by end-2027
Why this matters
The MUFG relationship creates a strategic route to embed Shriram Finance in corporate dealer and supplier networks, making partnership-led distribution and ecosystem acquisitions more attractive.
What to watch
- Disclosed loan-book growth and disbursements in EV, passenger-vehicle, MSME, dealer and supply-chain finance.
- Named OEM, consumer-durables brand, distributor or anchor-corporate partnerships linked to MUFG introductions.
- Share of new originations outside commercial-vehicle finance and changes in average ticket size.
- Net interest margin movement, borrowing-cost trends and proportion of lower-cost bank or institutional funding.
- Early-bucket delinquencies, GNPA/NNPA and credit-cost trends in newer retail and dealer cohorts.
- Details and initial performance of mid-sized corporate lending after the October launch.
- Dealer inventory stress, auto-retail sales trends and EV resale-value or repossession data.
- Launch co-origination, referral or ecosystem-finance programs with MUFG-linked OEMs, distributors and large corporate anchors.
- Expand inventory, floor-plan and receivables financing for auto dealers and consumer-durables retailers.
- Build EV-specific underwriting around battery condition, resale values, insurance, charging economics and fleet cash flows.
- Use dealer relationships to cross-sell passenger-vehicle loans, gold loans, MSME credit and insurance products.
- Recruit corporate-banking, supply-chain-finance and risk-management talent ahead of the planned mid-sized corporate lending rollout.
- Seek capital-market or bank funding structures that better match the tenor of dealer and supply-chain loans.