IndoStar Capital Finance 16 April 2019 IndoStar Capital NBFC Traditionally a wholesale lender, INDOSTAR hired Mr Sridhar as Executive VC & CEO to lead its retail lending foray. Over the past few years, retail lending has gained traction and accounts for 42% of INDOSTARs overall loan book. In the corporate finance segment, INDOSTARs focus has remained on ~50 clients over the past few years, which has helped in better monitoring of accounts. However, in its SME lending book, INDOSTAR has witnessed an increase in the GNPL ratio to 3.2%. The companys other two businesses, vehicle and housing finance, have only commenced in last one year, and thus, yet to see the impact of seasoning of portfolio. These businesses have negligible NPLs. However, as the vehicle finance book scales up, we expect the GNPL ratio to reach 2% and credit costs of ~1%. We believe the company is better placed now and can focus on growth.