CEO Ravi Narayanan outlines a major strategic shift to protect portfolios from global market volatility.
SMFG India Credit accelerates its secured lending growth to combat global economic uncertainties.
Global geopolitical uncertainties are prompting Indian lenders to drastically rethink their credit strategies. Consequently, SMFG India Credit is shifting focus towards secured lending to protect its portfolios. The non-banking financial company plans to increase its secured loan share to sixty per cent. This strategic pivot targets a steady annual asset under management growth of twenty per cent.
A recent capital infusion of Rs 5,000 crore from its Japanese parent group supports this vision. Furthermore, Managing Director Ravi Narayanan noted that global disruptions primarily harm unsecured borrower segments. The lender intends to mitigate risks by prioritising vehicle finance and affordable housing. The company will introduce supply-chain finance during the current fiscal year to diversify offerings.
Moreover, this expansion leverages advanced technology and the robust SMFG-SMBC global financial ecosystem. Narayanan highlighted that updated co-lending frameworks offer excellent collaborative opportunities for financial institutions. He suggested that successful banking partnerships demand long-term alignment rather than rapid commercial gains. The broader operating environment still presents various challenges regarding funding costs and credit quality.
Nevertheless, the institution remains highly optimistic about individual borrower models within the microfinance sector. Better self-regulation and strict customer credit discipline are currently driving this positive market sentiment. Comprehensive digital transformation initiatives are streamlining the firm’s overall customer acquisition processes. Finally, investments in automated credit assessments and artificial intelligence ultimately improve rural financial distribution.
(Source: BFSI)
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