Corporate FD: Shriram Finance Hikes Interest Rates On Stable Rated AA+ Fixed Deposits

The largest retail NBFC in India, Shriram Finance Ltd. (SFL), has raised fixed deposit interest rates by 0.05 to 0.20 for a range of maturity periods. The revised rates remain in effect as of April 9, 2024. SFL provides interest rates on non-cumulative fixed deposits for tenures of 12 to 60 months that range from 7.85% to 8.80% annually. For the same tenure range, the effective return on cumulative fixed deposits ranges from 7.85% to 10.50% annually. An additional 0.50% interest is available to elderly individuals who were 60 years of age or older at the time of deposit or renewal, and an additional 0.10% interest is available to women investors. On all renewals, SFL will provide an additional 0.25% annual interest rate to the depositors.

ICRA has rated the fixed deposits as "[ICRA]AA+ (Stable)" and India Ratings and Research as "IND AA+/Stable". There will be a minimum deposit of Rs. 5,000 and deposits will be taken in multiples of Rs. 1,000.

Umesh Revankar, Executive Vice Chairman, Shriram Finance Ltd said, "The revised term deposit rates aim to provide our Depositors with a range of attractive deposit rates. These revisions not only benefit depositors for wealth creation but also contribute to the objective of balancing and optimizing the overall cost of deposits."

A retail asset financing Non-Banking Finance Company (NBFC), Shriram Finance Limited has more than Rs. 2.14 lakh crore in assets under management (AUM). Financing alternatives for gold, tractors and agricultural equipment, micro, small, and medium-sized businesses (MSMEs), personal loans, business loans, and passenger and commercial automobiles are provided by Shriram Finance. With a network of 3,037 branches and 73,485 employees, it serves over 82.21 lakh customers throughout all of India.

Recently, Shriram Finance informed stock exchanges that "This is to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Friday, April 26, 2024, inter-alia to consider: 1. Approval of Audited Financial Results (Standalone and Consolidated) of the Company for the quarter and financial year ended March 31, 2024. 2. Recommendation of final dividend, if any, for the financial year ended March 31, 2024. 3. Approval of resource mobilisation plan for the financial year 2024-25 for issuance of debt securities viz. redeemable non-convertible debentures (NCDs)/ subordinated debentures on private placement basis and/or public issue in tranches, bonds/notes in offshore markets, External Commercial Borrowings and other methods of borrowing for the purpose of business of the Company. 4. Matters relating to the ensuing 45th Annual General Meeting of the Company."