Shriram Finance: Revankar Predicts 100 bps Fund Cost Drop Post-MUFG Deal

• Umesh Revankar, Shriram Finance's Executive Vice Chairman, anticipates a 100 bps reduction in the cost of funds over the next 1.5-2 years.
• This reduction is driven by a stronger balance sheet, lower leverage, and potential credit rating upgrade following the MUFG deal.
• Mitsubishi UFJ Financial Group (MUFG) acquired a 20% stake in Shriram Finance for ₹39,620 crore, announced December 19.
• MUFG's investment brings international expertise, digital platform knowledge, and access to new borrower segments, without management change.
• Shriram Finance plans to pass on part of the cost savings to customers, maintaining its focus on retail lending to underbanked SMEs as an NBFC.

Why It Matters: Shriram Finance expects significant fund cost reduction and growth from the strategic MUFG partnership.