Why Shriram Finance Is Choosing To Stay An NBFC, Not A Bank

Shriram Finance has reiterated that it has no plans to apply for a banking licence, maintaining a clear strategic preference for remaining an NBFC. Speaking to Business Today, Vice Chairman Umesh Revankar said there have been no discussions - formal or informal - with Japanese partner MUFG on becoming a bank. Revankar explained that the NBFC structure allows Shriram Finance to maintain a direct, closer relationship with customers, enabling greater innovation, customization and service flexibility. He added that while banks operate across multiple activities such as deposits and overdrafts, Shriram Finance’s strength lies in its focused lending model. According to him, remaining an NBFC is better aligned with customer needs and the company’s expertise, reinforcing the philosophy that what benefits the customer ultimately benefits the business.