Fusion Finance Charts Resilient Course Amid Geopolitical Tensions

Fusion Finance aims for its MSME portfolio to make up 14-15% of its loan book by FY27, with a focus on small businesses in tier-III and IV markets. The company maintains a liquidity buffer amid geopolitical uncertainties, prioritizing portfolio quality and profitability over rapid unsecured lending expansion.

Fusion Finance is setting sights on its MSME portfolio comprising 14-15% of its overall loan book by FY27, according to Managing Director and CEO Sanjay Garyali. This strategy comes as the lender seeks to diversify growth and secure its position amidst the geopolitical tensions in West Asia.

Garyali revealed that the current MSME portfolio stands around Rs 700-800 crore, with a focus on small businesses in tier-III and IV markets. These enterprises remain relatively shielded from global disruptions compared to export-linked sectors. He emphasized the need to increase monthly MSME disbursements by 40-50% within the year.

With uncertainties in oil prices and global tensions, Fusion Finance has bolstered its liquidity, maintaining Rs 1,800-2,000 crore against an internal need of Rs 1,400 crore. The lender also signaled a cautious growth strategy, prioritizing portfolio quality and profitability in its business decisions.