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Pre-Merger Pilot: Shriram Transport Branches Deploy Gold Lending Products

As part of the pilot cross-selling initiatives preceding the merger of the Shriram Group NBFCs, branches of the Shriram Transport Finance Company (STFC) started selling gold loan products. To start the process, the group has launched a gold loan in a branch of STFC in Kerala, which will be extended in the next 15 to 20 days to 15 to 20 other branches in the state, in parts of Karnataka, Chhattisgarh and Madhya Pradesh.

The teams are being formed and by the end of August the group would be offering gold loans at over 100 STFC branches, YS Chakravarti, MD and CEO, Shriram City Union said recently. Finance (SCUF), during a meeting of analysts. The proposed merger of Shriram City Union Finance (SCUF) and Shriram Transport Finance Company (STFC) will lead to the birth of Shriram Finance. The group has made significant progress in terms of statutory and regulatory approvals. The merger received the green light from Sebi, stock exchanges, the Reserve Bank of India, shareholders and secured and unsecured creditors.

“We have also received the green light from the Insurance Regulatory and Development Authority of India (Irdai), so for now what is pending is clearance from the Competition Commission of India and the National Company Law Tribunal,” did he declare. According to him, they hope that these approvals will arrive within the next two months. He said the most crucial would be the National Company Law Tribunal (NCLT) as that is where the time they are going to take some time, “But hopefully by the end of September we should have NCLT order in hand. So I would say we remain committed to our original roadmap that by the end of September or at best October we should be a legal entity,” he said.

In the meantime, the group has started the process of assigning responsibilities to the Heads of Geographical Units and their immediate reports, in addition to orienting the commercial teams of Shriram City and Shriram Transport to the products. “IT systems integration is also progressing well and so we will be able to start as a merged unit when we are able to announce the final merger,” he said.

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