INDIA'S PRIVATE CREDIT LANDSCAPE: OPPORTUNITIES & GROWTH TRAJECTORY

With over two decades of expertise in financial services, Vineet specializes in debt capital markets, credit, financial inclusion, and asset management.

He served as CEO of IFMR Investment Managers and CFO of IFMR Capital, and has held significant roles at the Tata Group and Standard Chartered Bank. In an interaction with CEOInsights magazine, Vineet discusses India's private credit potential due to market gaps, stresses mid-market loan demand, and delves into performing credit nuances. He also advocates regulatory reforms for a deeper bond market. Below are the key excerpts of the following interaction.

1.How do you expect the Indian private credit scenario to pan out in the coming years? 

The opportunities for private credit in India emanate from structural issues in its debt market causing a funding gap. Following the global financial crisis, the banking sector became increasingly risk averse towards the mid-corporate space. Since 2018-19, asset managers have sharply cut down their allocations to the segment following credit defaults while non-bank lenders largely migrated to retail credit after facing a liquidity crunch.