Shriram Transport Finance Company (STFC) is a financial institution specialized in the transport sector. It finances commercial vehicles (88% second-hand and 12% new), such as utility vehicles, passenger transport vehicles and tractors.
STFC serves over 2.03 million clients via a network of 1,545 branches and 26,600 employees. It is the leading institution for vehicle finance in India, with a market share of around 25% for second-hand vehicle financing and 8% for new vehicle financing.
This project will finance the purchase of compressed natural gas (CNG) vehicles, which are considered to pollute less than conventional diesel and petrol vehicles.
Proparco’s support to STFC’s growth should contribute, to a limited degree given the size of the financial institution’s balance sheet, to maintaining some 27,000 direct jobs and creating some 22,000 additional jobs, with a total of some 49,000 employees over the next 5 years, including over 2,000 women. Support for over 24,000 indirect jobs could be added to these direct jobs, related to some 10,000 SMEs that will be able to benefit from PROPARCO’s financing.
In social terms, in addition to the indirect positive impact on air quality, this credit line should ensure financial inclusion for underserved Indian populations (plan to open 150 new branches a year in rural areas).
Furthermore, the project will support the expansion of the institution’s strong training system for STFC employees and professional drivers, with the number of executives and non-executives trained expected to double over the next five years.
This information is given at the time of signature, without prejudice to any developments in the operation/project