This group almost ran the risk of collapse when the regulators were acting tough, in the wake of the CRB Capital scam, on non-banking finance companies, which were registered with the Reserve Bank of India (RBI) and mobilising public deposits. Those were the days when there was no internet. Communications happened through teleprinters and fax machines. One day in the early 90s, RBI faxed a release to media offices stating that three companies of the Shriram group were barred from accepting fresh deposits as they had no credit rating. R Thyagarajan, one of the founders of the Shriram group, was shell-shocked when he was informed of this RBI fiat, as the companies concerned did not solicit any fresh deposits from the public but only carried a statutory advertisement in a local paper for renewal of deposits. The RBI directive would have led to a run on the companies but for a quick thinking on the part of Thyagarajan. In a smart move, he converted a large portion of deposits into debt instruments. That action largely restored the confidence among the investing public. That was history. Since then, the group has travelled quite a bit. Shriram – always a household name in the southern part of the country – today dominates the national scene in the NBFC (non-banking financial company) space. The statistician-turned-financial stalwart, Thyagarajan, somehow or other, found ways to measure the moves of the regulators and fought hard to put Shriram on a stronger wicket. Today, venture funds and others are making a beeline for the Shriram group. A south Shriram is a national Shriram now!
