Poonawalla Fincorp Limited Unveils AI-Driven Underwriting Tool with IIT Bombay

Poonawalla Fincorp Limited (Poonawalla Fincorp Limited), part of the Cyrus Poonawalla Group, has taken a significant step forward in digital transformation. The company has officially launched a new AI-powered underwriting solution. This was developed in collaboration with the Indian Institute of Technology (IIT) Bombay. With this move, Poonawalla Fincorp Limited aims to streamline its credit assessment system and make faster loan decisions.

Share Price Sees a Healthy Jump

Poonawalla Fincorp

Soon after the announcement, the stock market reacted positively. At 11:02 am today, the shares of Poonawalla Fincorp Limited were trading at ₹349. This marks an increase of ₹14.20 or 4.24% on the NSE. Investors responded well to the company’s new tech-based initiative. The announcement signals growth and increased operational efficiency, which is being reflected in the stock’s upward momentum.

AI and Human Intelligence Come Together

This credit underwriting tool is not entirely machine-run. It merges human expertise with artificial intelligence. Built using Large Language Models and Machine Learning, the solution is set to make loan approvals quicker and more accurate. The goal is to help credit managers make smarter decisions in less time.

The system is designed to evaluate credit applications efficiently without losing the human touch. It also ensures compliance and risk management remain under control. This hybrid model keeps human oversight in the loop while leveraging AI’s power to handle large data sets and patterns.

Arvind Kapil’s Vision for Future-Ready Lending

Arvind Kapil, the Managing Director and CEO of Poonawalla Fincorp, highlighted the importance of the new initiative. “At Poonawalla Fincorp we fully respect and understand the transformative impact of AI in reshaping the credit landscape,” he stated. According to him, the system will increase credit managers’ productivity by up to 40% in the retail loan segment.

This development is aligned with Poonawalla Fincorp Limited’s strategy to improve turnaround time and bring down operational costs. Arvind Kapil believes that such innovations are necessary to serve customers better and stay ahead in a competitive market.

A Successful Industry-Academia Collaboration

This AI-powered system is a result of joint efforts between Poonawalla Fincorp Limited and IIT Bombay. Dr. Pushpak Bhattacharyya from IIT Bombay explained that the project reflects how educational institutions can support real-world businesses. He stressed the value of combining research with practical application to create tech solutions that solve actual industry problems.

This partnership shows the growing relevance of academic expertise in developing tools that impact large-scale finance operations. It is an example of how modern businesses can innovate with the help of strong research backgrounds.

Future Plans for AI Enhancement

While the current AI tool is a breakthrough, Poonawalla Fincorp Limited has plans to take it even further. The company is working on enhancing this solution with deep learning algorithms. This would allow the system to become self-learning, making it capable of evolving on its own over time. Autonomous decision-making could become a part of Poonawalla Fincorp Limited’s operations in the future.

With this, Poonawalla Fincorp Limited aims to not only stay updated but also become a tech-forward NBFC in the country. Continuous system improvement will be key to staying ahead in the financial services space.

Broad Range of Services and Growing Reach

Poonawalla Fincorp Limited is based in Pune and operates across 18 states and 2 Union Territories. As of December 31, 2024, the company reported an Assets Under Management (AUM) of ₹30,984 crore. The company’s portfolio includes pre-owned car loans, consumer loans, business loans, and personal loans.

In another development, the company has recently stepped into the commercial vehicle financing segment. This shows the company’s intent to expand into new markets and offer a broader range of loan products to its customers.

A Forward-Looking Approach to Lending

With this AI-powered underwriting solution, Poonawalla Fincorp Limited is setting the tone for what the future of lending might look like in India. The blend of AI, machine learning, and human insight makes it a strong example of innovation in financial services. By investing in such technologies, Poonawalla Fincorp Limited is clearly positioning itself as a leader in the NBFC space.

In conclusion, the launch of this AI system is more than just a tech upgrade. It marks a shift in how credit is evaluated and approved in today’s fast-paced lending world. With the support of leaders like Arvind Kapil and top institutions like IIT Bombay, Poonawalla Fincorp Limited is ready to create a smarter, faster, and more reliable credit experience for its customers.