Commercial vehicle financing major Shriram Transport Finance Company and two-wheeler and MSME financier Shriram City Union Finance have been merged to form Shriram Finance Limited (Shriram Finance).

According to Shriram Finance, the company will be a diversified player with a robust net worth of Rs 40,900 crore and Assets under Management (AUM) of Rs 1,71,000 crore catering to over 6.7 million customers across India.

The growth strategy for the company will be focused on driving the self-employed and the micro, small and medium enterprises (MSME) economy.

Commenting on the merger Umesh Revankar, Executive Vice Chairman said, "It is the natural culmination of a journey of 43 years. With the balance sheet strengthened through the merger, we can serve the needs of the market better than ever before."

As India is growing, we are seeing robust demand for credit among MSMEs and the merger timing is brilliant, said YS Chakravarthi, MD & CEO.

Shriram Finance further announced the appointment of Jugal Kishor Mohapatra as Chairman of the Company and Maya Sinha as an Independent Director.