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Shriram Transport Finance Company

Limited (STFC)

Presented by:
Arun Sharma
Bhuvnesh Kashyap
Jasdeep Singh Basra
Megha Tewari
Neha Aggrawal
Prateek Biswas
Shambhavi Shukla
Sonakshi Kalra
OVERVIEW
• Shriram Transport Finance Company Limited (STFC), are one
of the largest asset financing NBFCs in India with a niche
presence in financing pre-owned trucks and Small Truck
Owners (STOs).

• It was established in the year 1979 and is registered as a
deposit taking NBFC with Reserve Bank of India under
Section 45IA of the Reserve Bank of India Act, 1934.

• It is the flagship company of the Shriram Group which has
significant presence in Chit Funds, Consumer Durable
Finance, Life Insurance, General Insurance , Stock Broking,
Property Development, Project Engineering, Wind Energy
among others.
• As on March 31, 2009 they had 479 branches and tie up over
500 private financiers across the country.

• Operational efficiency, integrity and a strong focus on catering
to the needs of the common man by offering him high quality
and cost-effective products & services are the values driving
STFC.
OFFERINGS

Products (pre-owned and new) offerings to Small truck Owners
(STOs) and First time user (FTUs) includes:

MAIN PRODUCTS: OTHER PRODUCTS:

• Commercial Vehicle Finance. •Tyre Loan.
• Engine Replacement Loan.
• Passenger Commercial • Working Capital Loan.
Vehicle Finance. •Co-Branded Credit Card.
• Multi Utility Vehicle Finance. •Freight bill discounting.
• Three wheeler Finance.
• Tractor Finance.
• Construction Equipment
Finance.
SERVICES OFFERINGS
Over 70% of India's freight moves on trucks. A majority of
these
trucks, amounting to over 90%, are owned and operated by
independent operators. Of the over 25 lakh truck operators in
the
country, less than 8 lakh operators have access to fair and
equitable credit, thus making credit support to the majority
Enter the Shriram Group. We began financing individuals who
wanted to purchase trucks in 1979. Today, Shriram is amongst the
largest financiers of individual truck purchasers in the country.
More than 300 active Shriram Group branches across the country
have successfully managed to transform over 5 lakh truck drivers
into proud truck owners. We have deployed close to Rs.9000
crores (US$ 2 Billion)
Our products (pre-owned and new) offerings to
Small truck Owners (STOs) and First time user
(FTUs) includes:
 

MAIN PRODUCTS:
Commercial Vehicle Finance
Passenger Commercial Vehicle Finance
Multi Utility Vehicle Finance
Three wheeler Finance
Tractor Finance
Construction Equipment Finance
OTHER PRODUCTS:
Tire Loan
Engine Replacement Loan
Working Capital Loan
Co-Branded Credit Card
Freight bill discounting
Achievements
Stepping up efforts to penetrate deeper into the semi urban and
rural India, country's largest car maker Maruti Suzuki India
on Monday inked a pact with Shriram City Union Finance with an
initial allocation of Rs 1,000 crore.
Shriram Transport buys 40% stake in Ashok Leyland arm

ICAI Award - “ Silver Shield ” for Excellence in Financial
Reporting

Ashok Leyland brings STFC as strategic partner in Ashley
Transport Services

Best PE-Backed Company Award for 2008
Consumer finance
We entered the Consumer Durable Finance business in early 2002
through 'Shriram City Union Finance Ltd., the consumer finance
arm of the group. Within a short span of 2 years, we have
managed a portfolio of over Rs.584 crores in this business.

Our monthly business amounts to over Rs.25 crores in individual
loans, ranging from as little as Rs.8,000 to Rs.1,00,000, and with
tenures ranging from 12 months to 36 months.

Since its inception, we have financed over 2,15,000 white goods
and two-wheelers, with over 90% of the business arising out of
the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank,
UTI Bank and Development Credit
The
FIXED DEPOSITSIt is a deposit where the Interest is being paid at
Monthly/Quarterly intervals. Fixed Deposits are accepted in multiples of
Rs. 1,000/- subject to a minimum amount of Rs. 25,000/- per deposit
account.

Interest Payment Modes :- Post Dated interest warrants sent direct
to depositors
- Direct to the depositor with bank details 
- Through RBI Electronic Clearance Service (ECS) 
- DD

CUMULATIVE DEPOSITS:Cumulative Deposits are accepted in
multiples of Rs. 1,000/- subject to a minimum amount of Rs. 25,000/-
per deposit account. For Deposit interest rates
STFC claims a 20-25 per cent market share in the pre-owned truck finance
market. In addition, STFC has a market share of 7 per cent in the new truck
market.

At the current market price of Rs 288, STFC trades at 10 times its historic
earnings and 2.5 times its FY-09 book value.

Almost three-fourth of the total assets under management (loan book and
securitized assets put together) is contributed by pre-owned trucks and
the rest 25 per cent by new trucks. The book for STFC has grown at 53 per
cent CAGR in the period 2005-2008.

The company delivered robust earnings growth (57 per cent for FY-09)
despite the slowdown in new truck demand thanks to its significant
presence in pre-owned truck financing.

Risks:
Disbursements have dropped by at least 25% in the last two quarters and
Thank you