New Delhi, Jan. 23 -- Shriram Finance posted a bigger-than-expected third-quarter profit on Friday, bolstered by growth in lending for commercial and passenger vehicle purchases and loans to small enterprises.

The non-bank lender's adjusted profit rose 21.25% to 25.22 billion rupees ($274.9 million) in the quarter ended December 31, compared to an average analyst estimate of 24.15 billion rupees, as per data compiled by LSEG.

This was Shriram Finance's first earnings report after Japan's largest bank, MUFG, agreed to buy a 20% stake in the company for $4.4 billion in late December. Analysts have said the equity infusion would reduce the cost of funds for the non-bank lender and help increase its loan book in the next few years.

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