Poonawalla Fincorp Focuses on Growing Workforce and Expanding Branches

 Poonawalla Fincorp Ltd., under the leadership of Mr. Kapil, has revealed its plans for significant business expansion. With an aim to strengthen its operational capacity, the company will double its workforce and expand its physical presence across India. This move aligns with the company’s broader goal to increase its assets to 1.5 trillion rupees ($17.7 billion) over the next five years.

Six New Lending Products to Drive Growth

To diversify its retail lending portfolio, Poonawalla Fincorp will launch six new product lines in the next four to six quarters. These include loans for gold, used cars, shopkeepers, and education. The introduction of these new businesses is expected to cater to the financial needs of underserved customer segments, particularly in smaller towns and semi-urban areas.

The company plans to expand its branch network from the existing 100 branches to nearly 400 by next year. This expansion will combine digital services with physical infrastructure to offer a seamless borrowing experience to customers.

Also Read: Poonawalla Fincorp Strengthens Leadership with Salil Hajarnis as CTO

Navigating Market Challenges and Mitigating Risk

The expansion comes amidst increased regulatory scrutiny in India’s shadow banking sector. The Reserve Bank of India (RBI) has mandated higher provisions for risky loans to safeguard the sector. Despite this, Arvind Kapil remains confident in the company’s direction.

Kapil emphasized that diversifying into multiple retail-focused products will help the company reduce risk. With nine to ten lending offerings planned, Poonawalla Fincorp aims to cater to a wide range of customers, ensuring steady growth while balancing its risk exposure.

Stabilizing Operating Costs Through Growth

Poonawalla Fincorp’s recent earnings report showed an increase in operating costs and provisions for bad loans, which initially impacted the company’s stock performance. Analysts, however, view this as a temporary challenge. Kapil expects operating costs to come down as the company scales its business and streamlines operations.

By entering new markets and leveraging economies of scale, the company aims to stabilize costs relative to its growing asset base.

Also Read: Salil Hajarnis Appointed CTO: A Bold Move for Poonawalla Fincorp

Building a Stronger Workforce and Leadership Team

A key part of the expansion strategy is the growth of Poonawalla Fincorp’s workforce. The company plans to double its employee count from 2,500 to 5,000 within the next three quarters. This will ensure the firm has the capacity to manage its expanding product portfolio and branch network.

Since his appointment, Arvind Kapil has also focused on building a strong management team. Drawing from his experience at HDFC Bank, Kapil has onboarded industry veterans from leading financial institutions like Yes Bank and HDFC. This team will play a vital role in executing the company’s growth strategy.

Also Read: Poonawalla Fincorp’s New CTO: Salil Hajarnis Joins to Drive Digital Growth

Wealth Management Plans on the Horizon

Beyond retail lending, Poonawalla Fincorp is exploring opportunities in the wealth management sector. Initially, the company plans to distribute third-party investment products through its growing branch network. Over time, it may develop its own wealth solutions to diversify revenue streams further.

Leveraging Trust Built by the Poonawalla Group

The Poonawalla Group, renowned for its contributions during the pandemic through the Serum Institute of India, has become synonymous with trust. This legacy gives Poonawalla Fincorp a distinct advantage as it expands into the financial services sector.

Kapil highlighted how the company plans to capitalize on this trust by delivering reliable, customer-centric lending solutions to a growing market.

Conclusion

Poonawalla Fincorp’s CEO focuses on doubling the company’s workforce, expanding branches, and diversifying its lending portfolio reflects a clear vision for sustainable growth. Under the current leadership, the company is well-prepared to navigate challenges, serve diverse customer needs, and build a strong foundation for the future.