MC EXCLUSIVE Veteran banker Ravi Narayanan appointed as CEO of SMFG India Credit

Veteran banker Ravi Narayanan appointed as CEO of SMFG India Credit

Ravi Narayanan, former group executive of retail liabilities, branch banking, and products of Axis Bank has been appointed as CEO of SMFG India Credit, according to sources in the know. This is among the key changes brought about by Sumitomo Mitsui Financial Group (SMFG), ever since it took over Fullerton’s non-bank lending arm in November 2021. An email sent to SMFG India Credit seeking confirmation on Narayanan’s appointment remained unanswered till publishing the article. Narayanan could not be reached immediately for comments.

The move marks an important milestone for SMFG India Credit, as this is the first major management overhaul in the company ever since the Japanese lender acquired the business. SMFG initially acquired 74.9 percent stake in Fullerton India Credit in 2021. Subsequently in May last year it increased its stake to 100 percent.

Immediately after the acquisition, the old team of Fullerton was reinstated, with Shantanu Mitra assuming charge as MD & CEO of the company. “He brought back most of his earlier team to company soon after the sale to SMFG concluded,” said a source who didn’t want to be named.

However, Mitra stepped down from his position in June this year. Shortly after his resignation a three-member committee of executives was set up for a period of 90 days to take care of operations at SMFG India Credit. “Narayanan’s appointment would be the first time that an outsider to Fullerton is roped in for a key role in the company. He will take charge before the tenure of committee of executives comes to an end,” said a senior executive aware of the development.

Industry sources said the timing of Narayanan’s appointment is quite interesting. He is likely to come in at a time when SMFG India Credit is undergoing a change in business strategy to ensure an improvement in its quality of assets and earnings. According a credit rating report by ICRA, the lender’s return on average managed assets declined from 1.4 percent in FY24 to 0.8 percent in FY25. The ratio stood at 2 percent in FY23. SMFG India Credit closed FY25 with a loan book of approximately Rs 62,000 crore, about 28 percent year-on-year growth. Meanwhile, with continued efforts to clean up the book, the lender’s gross non-performing assets reduced to 1.9 percent in FY25 from 2.5 percent a year ago.

“Narayanan’s immediate task would be to further clean-up and streamline operations, a task commissioned by the Japanese promoter around September last year,” said a source cited above. Market observers say his appointment may also be an indication of a larger narrative at play. To be sure, Sumitomo Mitsui Banking Corporation (SMBC), the holding company of SMFG has made a move to acquire controlling stake in Yes Bank. Should the regulatory approvals come in SMBC’s favour, SMFG India Credit may be merged with the bank, say sources. “That’s still a long shot, but this clean up could be intended at that,” said a senior banker who didn’t want to be named.