Shriram Finance to Enter the Payments Business through Mobile Wallets and Prepaid Cards
Shriram Finance Ltd. 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. Endorsed the plan to provide payment services via Mobile Wallets, Prepaid Cards (Food Card, Gift Card), FASTag, and others, delivering a secure, convenient, and efficient substitute for cash transactions for our clients.
The lender must obtain approval from the Reserve Bank of India prior to including customers for the new product.
Upon receiving approval from the central bank, the firm will compete directly with Paytm parent One97 Communications Ltd., Walmart's PhonePe, and the largest non-bank lender, Bajaj Finance Ltd.
Shriram Finance announced a 10 percent year-on-year (YoY) increase in standalone net profit to Rs 2,139 crore for the fourth quarter ending March 2025, supported by robust disbursements and solid net interest income.
The net interest income for the fourth quarter rose 13 percent to Rs 6,051 crore compared to Rs 5,336 crore during the corresponding period last year.
Total income in Q4 reached Rs 11,460 crore, an increase from Rs 9,498 crore the previous year. Revenue from operations increased by 21 percent year-over-year to Rs 11,454 crore.
Fee and commission earnings of Rs 331 crore more than doubled compared to the same period last year.
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"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," says Arul Chakravarthi, MD & CEO, Shriram Finance.