Shriram Capital Secures RBI Approval for Asset Reconstruction Company
| Aspect | Details |
|---|---|
| Approval Status | Shriram Capital received in-principle approval from RBI to establish an ARC. |
| Application Date | November 2023 |
| Internal Operations | Focus on internal operations and strategic planning for the next two quarters |
| Leadership | Decisions regarding the ARC head are pending; Shriram Group exploring options |
| Focus Area | ARC to focus on acquiring retail loans, excluding microfinance loans |
| Management Team | Building an in-house team for the ARC |
| Quarterly Results | Consolidated net profit increased by 19% to Rs 2,031 crore in Q1 FY25 |
| Income | Total income rose by 16% YoY to Rs 9,610 crore |
| Expenses | Total expenses grew by 21% YoY to Rs 6,943 crore |
| Asset Quality | Gross NPAs declined to 5.39%; net NPAs moderated to 2.71% as of June 30, 2024 |