Shriram group has decided to enter the housing finance business through Shriram City Union Finance Ltd (SCUF), which is planning a company for housing finance. To start with, the company will have a capital of around Rs 100 crore.
Subhasri Sriram, executive director, SCUF, told Business Standard that the company woud be a 100 per cent subsidiary of SCUF, focusing on housing finance, mortgage finance and other other related finances as well as other activities to be decided over time.
“Our major focus will be on Tier II and III cities and will operate through the group's network and SCUF network, currently covering 650 locations in the country.” She declined to comment on the new company's name and its business plan, stating that “we have just got the approval from the board. We will come up with an announcement.”
SCUF, which reported an income of Rs 1,102.84 crore in 2009-10 is the flagship company of the Shriram group.