Shriram Finance Ltd. on Friday said that the board has approved the plan to enter the payments business by offering mobile wallets and prepaid cards as the shadow lender seeks to diversify its offerings and boost earnings.
"Approved the proposal to offer payment services through Mobile Wallets, Prepaid Cards (Food Card, Gift Card), FASTag, etc. providing a secure, convenient and efficient alternative to cash transactions for our customers," said the company statement.
The lender will need the Reserve Bank of India’s approval before adding customers for the new product.
Following approval from the central bank, the company will be in direct competition Paytm parent One97 Communications Ltd., Walmart’s PhonePe, and biggest non-bank lender Bajaj Finance Ltd.
Shriram Finance on Friday reported a 10% year-on-year (YoY) growth in standalone net profit to Rs 2,139 crore for the fourth quarter ended March 2025, aided by strong disbursements and healthy net interest income.
The net interest income for the fourth quarter increased 13% to Rs 6,051 crore as against Rs 5,336 crore in the same period of the previous year.
Total income in Q4 stood at Rs 11,460 crore, up from Rs 9,498 crore a year earlier. Revenue from operations rose 21% YoY to Rs 11,454 crore. Fee and commission income of Rs 331 crore more than doubled from the year-ago period.
The board declared a final dividend of Rs 3 per share, taking the total pay out for FY25 to Rs 9.9 per share, adjusted for stock split.
"Our strong performance this year reflects the strength of our lending model and disciplined risk management. We are focused on digital expansion and improving customer experience while maintaining our leadership in rural and semi-urban lending," said Arul Chakravarthi, MD & CEO, Shriram Finance.
"Approved the proposal to offer payment services through Mobile Wallets, Prepaid Cards (Food Card, Gift Card), FASTag, etc. providing a secure, convenient and efficient alternative to cash transactions for our customers," said the company statement.
The lender will need the Reserve Bank of India’s approval before adding customers for the new product.
Following approval from the central bank, the company will be in direct competition Paytm parent One97 Communications Ltd., Walmart’s PhonePe, and biggest non-bank lender Bajaj Finance Ltd.
Shriram Finance on Friday reported a 10% year-on-year (YoY) growth in standalone net profit to Rs 2,139 crore for the fourth quarter ended March 2025, aided by strong disbursements and healthy net interest income.
The net interest income for the fourth quarter increased 13% to Rs 6,051 crore as against Rs 5,336 crore in the same period of the previous year.
Total income in Q4 stood at Rs 11,460 crore, up from Rs 9,498 crore a year earlier. Revenue from operations rose 21% YoY to Rs 11,454 crore. Fee and commission income of Rs 331 crore more than doubled from the year-ago period.
The board declared a final dividend of Rs 3 per share, taking the total pay out for FY25 to Rs 9.9 per share, adjusted for stock split.
"Our strong performance this year reflects the strength of our lending model and disciplined risk management. We are focused on digital expansion and improving customer experience while maintaining our leadership in rural and semi-urban lending," said Arul Chakravarthi, MD & CEO, Shriram Finance.
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