Financial services firm Shriram City Union is in focus after it reported a 15 percent rise in quarterly profit.

V Lakshmi Narasimhan, executive director of Shriram City Union Finance spoke to CNBC-TV18 about the earnings and outlook.

“Net interest margin (NIM) is likely to hold at the existing level essentially from the perspective of close to 60 percent, the borrowing is fixed in nature. The balance 20 percent comes in through the retail deposit which again is quite sticky in terms of cost and money. I think in terms of the net, we will remain at the existing levels even though we have guided for 50 bps drop at the beginning of the financial year. That is all baked in in our existing guidance. We expect to increase the lending rate for certain segment of customers by about 25-30 bps, that should hold us good for the full year,” said Narasimhan.

“Essentially housing finance contributes close to about 8 percent of the consolidated loan book. We have restrategised the housing finance business. So we should start seeing appropriate numbers from Q4 of this financial year because Q3 is when we implement our plan,” he added.

“Our strategy on the housing finance would continue to remain in the affordable housing segment,” said Narasimhan.

“We have guided for 25-30 percent loan book growth on the housing finance for the year,” he further mentioned.