Lender Focuses on Workforce Growth and Retail Lending Expansion

Poonawalla Fincorp is set to double its workforce and expand its loan offerings over the next five years. Under CEO Arvind Kapil, the company has a target of reaching ₹1.5 trillion ($17.7 billion) in total assets. This plan involves introducing new loan products and increasing its branch network, catering to diverse customer needs.

Broadening Loan Options

Poonawalla Fincorp will roll out six new retail-focused loan products within the coming year. These include gold loans, loans for used cars, education financing, and credit for shopkeepers. The focus will remain on salaried individuals working for top Indian companies. By diversifying its offerings, the lender aims to reduce risk and create a stable business structure.

Poonawalla Fincorp CEO Arvind Kapil, who joined in June, emphasized that a wider product range is essential for building a strong foundation. His newly formed management team, which includes experienced professionals from leading banks, is equipped to drive these initiatives.

Expansion of Branch Network

To support its growth, the company plans to increase its branch count from 100 to 500 by the end of next year. These new branches will focus on meeting demand in smaller cities, particularly for loans against gold. The company will also strengthen its digital offerings to improve accessibility and customer experience.

This combination of physical branches and digital platforms is expected to increase the lender’s reach while maintaining operational efficiency.

Overcoming Current Challenges

The expansion comes amid slowing credit growth and tighter regulatory scrutiny by the Reserve Bank of India. The lender recently faced rising provisions for bad loans and higher operating costs, which impacted its stock performance. Despite these challenges, CEO Kapil is confident that operating costs will stabilize as the company scales up its operations.

Analysts have noted that while the changes are bold and rapid, they are necessary steps toward building a stronger financial organization. While short-term costs may rise, the long-term benefits are expected to outweigh these initial hurdles.

Trust and New Ventures

The company plans to build on its existing reputation, which has earned it trust across customer segments. This trust will serve as a foundation for expanding its retail lending business.

Additionally, the lender is exploring the possibility of entering the wealth management sector. It plans to start by offering third-party investment products and may develop its own in the future.

Growth Plans Moving Forward

The company’s immediate focus is on organic growth. However, it remains open to acquisitions if they align with its goals. Its rebranding in 2021 laid the groundwork for its transformation into a retail-focused lender, and the current initiatives are an extension of this journey.

Preparing for Rapid Expansion

To implement these plans, the company aims to double its workforce of 2,500 employees within the next three quarters. A team of seasoned professionals is leading the efforts to ensure smooth execution of its strategy.

Despite challenges in the shadow banking sector, the lender is determined to create a diversified and customer-centric business model. By catering to varied customer segments, it seeks to establish itself as a leader in retail lending.

The company’s vision reflects a commitment to adapting to market demands while maintaining a focus on long-term stability and growth.