Shriram Finance , a leading non-banking financial company (NBFC), has announced a significant reduction in interest rates for its fixed deposits (FDs) and fixed investment plans. The new rates, effective from August 5, see cuts of up to 40 basis points across various tenures.

Key Changes in Fixed Deposit Rates

• The most substantial cut of 40 basis points was applied to the 36-60 month FD tenure.
• Interest rates for this tenure dropped from 8.00% to 7.60% per annum.
• Other maturities experienced reductions ranging from 25 to 35 basis points.

Revised Fixed Deposit Rate Structure

Additional Benefits Maintained

Despite the rate cuts, Shriram Finance continues to offer several additional benefits to its depositors:

• Senior citizens: Extra 0.50% interest
• Women depositors: Additional 0.05% interest
• FD renewals: Bonus 0.15% interest

Fixed Investment Plans

Similar rate reductions have been implemented across all tenure ranges for fixed investment plans.

Deposit Details

• Minimum investment: ₹5,000
• Credit ratings:
  • [ICRA]AA+ (Stable)
  • IND AA+/Stable

This move by Shriram Finance comes amidst a changing interest rate environment in the financial sector. The company's decision to reduce FD rates may impact investors looking for high-yield savings options, particularly those in the longer tenure brackets. However, the maintained additional benefits for specific categories of depositors could still make these FDs attractive for some investors.

Potential depositors should carefully consider these revised rates and compare them with other available investment options before making decisions.

Shriram Finance Limited , a prominent player in the Indian financial services sector, has announced a significant move in its debt management strategy. The company's Banking & Finance Committee has approved a repurchase program for its outstanding non-convertible debentures (NCDs) worth up to Rs 900.00 crores.

Buyback Details

The buyback initiative targets senior, secured, rated, listed, redeemable, taxable NCDs with the ISIN INE721A07RU2. These debentures, which were issued on a private placement basis, are set to mature on December 19, 2025. The company has set key dates for this repurchase program:

• Record Date: August 5, 2025
• Payment Date: September 2, 2025

Repurchase Mechanism

Shriram Finance has opted for a first-come, first-served approach for this buyback offer, with the company retaining discretion over the process. The pricing for the repurchase will be determined through consultation with the debenture holders, taking into account prevailing market conditions and aligning with the company's Policy for Buyback of Debentures.

Impact on Outstanding NCDs

Currently, there are 1,54,550 NCDs outstanding under this particular issue. Assuming full acceptance of the buyback offer, this number would decrease to 64,550, representing a significant reduction in the company's outstanding debentures.

Regulatory Compliance

The company has duly informed the stock exchanges about this development, in compliance with Regulations 30, 51, 60, and other applicable regulations of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements.

Committee Meeting Details

The Banking & Finance Committee meeting that approved these measures was held on July 30, 2025. The meeting commenced at 9:00 p.m. and concluded at 9:30 p.m.

This strategic move by Shriram Finance to repurchase its NCDs could potentially strengthen its balance sheet and optimize its debt structure. Investors and market watchers will likely keep a close eye on how this buyback program unfolds and its impact on the company's financial position.