On July 28, Shriram Finance shares zoomed 1% higher, a day after the non-bank financier described a 25.13% YoY upsurge in its April-June quarter net profit to Rs 1,675.44 crore.

Investors were impressed with the improvement in asset quality. Gross stage 3 assets decreased to 6.03% as of June 30 from 6.21% in the March quarter and 6.27% in a year-ago period.

Similarly, net stage 3 assets were 2.96% in the Q1FY24, lower from 3.19% in the previous quarter and 3.32% a year ago.

Stage 3 assets in non-banking finance companies (NBFCs) are loans due for over 90 days.

At noon, the stock was trading at Rs 1,821.35 on the NSE, up 0.53% from the previous close.

In 2022, Shriram Finance followed the merger of Shriram Transport Finance Company (STFC) and Shriram City Union Finance, rapidly expanding its loan book.

In the June quarter, its assets under management rose 19% from the previous year, determined by growth in passenger vehicles, MSME gold loans, and personal loans. Erstwhile branches of STFC started offering personal loans now. Thus, the segment has shined 81% YoY.