NBFCs

Sadaf Sayeed, chief executive officer of Muthoot Microfinance said the move could unlock lending, revive financial inclusion and support sectoral growth.

While the immediate impact of the ongoing war in West Asia remains limited, non-bank lenders believe the real risk lies in a prolonged conflict, which could trigger second-order effects across inflation, demand and credit cycles.

Gold loan assets under management rose 50% year-on-year to around ₹1.4 trillion in Q3, beating expectations. So why did the stock plummet on Friday?

With traditional growth engines beginning to sputter, the lender is betting on a fortress balance sheet to navigate a more crowded and cautious credit market.

To drive this growth, the housing financier is focussing on several levers such as growing its branch and distribution network, adding more manpower for these segments, and investing in digital channels, newly appointed MD and CEO Ajai Kumar Shukla said.

The proposed guarantee cover is expected to be larger than the ₹7,500 crore package offered during the pandemic. To be managed by the National Credit Guarantee Trustee Company, it will underwrite lending risks for banks, covering defaults caused by factors outside the control of small borrowers.

The deal leverages Shriram’s unique ownership structure, which allows for potential future management control, and its superior return on assets compared to traditional banks.