How Abhay Bhutada Plans to Improve Finance Trajectory in 2024

Leadership Importance: Strategic vision and execution by leaders are crucial for financial institution success.
Bhutada's Role: Abhay Bhutada, MD of Poonawalla Fincorp, outlines a comprehensive strategy for 2024.
Focus Areas: Risk-adjusted methodology, prudent lending practices, and robust asset quality management.

1. How Abhay Bhutada
Plans to Improve
Finance Trajectory in
2024

2. Leadership Importance: Strategic vision
and execution by leaders are crucial for
financial institution success.
Bhutada's Role: Abhay Bhutada, MD of
Poonawalla Fincorp, outlines a
comprehensive strategy for 2024.
Focus Areas: Risk-adjusted
methodology, prudent lending
practices, and robust asset quality
management.

Introduction

3. A Risk-Adjusted Approach








Key Points

Risk Management: Avoids high-risk
categories like new-to-credit customers.
Strategic Focus: Targets customers with
established credit histories and verifiable
cash flows.
Objective: Minimizes defaults and
enhances loan portfolio quality.

4. Leveraging Data for Informed
Lending










Data-Driven Strategy

Extensive Database: Utilizes a rich database for informed lending
decisions.
Customer Selection: Prioritizes bureau-tested customers with proven
credit histories.
Risk Mitigation: Data insights reduce default likelihood, ensuring
prudent lending.

5. Ensuring Robust Asset Quality










Asset Quality Management
Customer Focus: Selects customers with
verifiable cash flows and strong credit
records.
Positive Results: Reduction in Gross NPAs
from 1.44% to 1.16% and Net NPAs from
0.78% to 0.59%.
Strategy Effectiveness: Demonstrates
success of Bhutada’s risk-adjusted
approach.

6. Confident Growth Trajectory














Growth without Compromising Quality

Stable Foundation: Lending to bureau-tested customers
provides a solid growth base.
Low Default Risk: Targeted customer segments are less likely
to default, ensuring portfolio health.
Sustainable Growth: Focused on achieving growth without
sacrificing asset quality.

7. Performance of the New Loan Book
















Loan Book Performance

Exceptional Results: New loan book performing exceptionally
well.
Validation: Success reinforces the effectiveness of Bhutada’s
risk-adjusted strategy.
Customer Selection: Careful selection and credit assessment
processes driving positive outcomes.

8. Strategic Execution and Future
Outlook


















Key Components
Credit Assessment: Rigorous process involving advanced analytics and database
leverage.
Technological Integration: Utilizes machine learning and data analytics for accurate
predictions.
Loan Portfolio Diversification: Mitigates sector-specific risks through diversification.
Risk Management: Continuous monitoring and proactive measures to maintain financial
stability.
Customer-Centric: Understanding needs and offering tailored products enhances
customer loyalty.

9. Broader Implications




















Industry Impact

Benchmark Setting: Bhutada’s strategy sets a
new benchmark for risk-adjusted growth.
Financial Stability: Promotes overall financial
stability and investor confidence.
Customer Trust: Builds trust through
responsible lending practices.

10. Conclusion




















Comprehensive Strategy: Bhutada’s plan focuses on risk-adjusted
growth and asset quality.
Sustainable Growth: Ensures sustainable growth through prudent
lending practices.
Technological Integration: Leveraging technology for continuous
improvement.
Industry Benchmark: Sets a benchmark for the financial industry.
Future Outlook: Positioned for continued success and financial
stability.

11. Thank you.