The leading commercial truck financing company in India, Shriram Finance Ltd. conducts discussions with banking institutions to obtain 250 million USD in additional funding after successfully acquiring 2 billion USD worth of international loans throughout this fiscal year.

Shriram Finance holds plans to acquire money through a three-year borrowing according to the statement of Parag Sharma who serves as managing director and chief financial officer of the non-banking financial company. The loan was announced by Shriram Finance to fund its substantial credit growth at double digits while following its 1.3 billion USD multicurrency loan in December which became the biggest offshore loan from an Indian shadow bank.

Shriram reported strong financial results during its December quarter. Shriram achieved a 19 percent rise in its loan book totaling Rs 2.5 trillion which corresponds to 28.6 billion USD while its profitability increased by 100 percent. Shadow banks with improved credit ranking expect reduced funding expenses following the Reserve Bank of India’s recent removal of some lending restrictions for these entities. The company targets national small- and medium-sized enterprises as new borrowers because traditional banks reject their loan applications. “We are seeing good demand from Tier 2, Tier 3 Indian cities for loans,” Sharma said in an interview in Mumbai. “Infrastructure sector is strong and rural agriculture output is good too, aiding our businesses. Our credit growth will be about 25 per cent this financial year.”

Sharma explains that the firm obtains funding through domestic debt instruments combined with offshore debt instruments amounting to 80 percent and 20 percent respectively. Shriram currently refrains from using overseas bonds and loans because of market instability together with hedging expenses.