Shriram Finance consolidates green finance biz under Shriram Green Finance
Notable because
Building on its expertise in financing electric vehicles, Shriram Finance has announced the consolidation of its green financing initiatives under Shriram Green Finance. The company aims to focus on growing its EV financing portfolio and eventually expand to other green segments. With this announcement, the NBFC has become one of the select few financial institutions (Fis) in India to set up a dedicated green financing arm, signalling a positive development towards greening India’s mobility sector.
What to look out for in the months ahead
After Mufin, Shriram Finance is reportedly the second NBFC to set up an exclusive entity for green finance. Moreover, the green financing entities at both these institutions have a specialised focus on EV financing. Will this encourage other NBFCs to diversify their portfolios and include more EV ventures? Moreover, will other NBFCs follow suit and set up separate green financing entities?