Loan portfolio lapses cloud growth plans of IndoStar Capital Finance

The financiers of Indo-Star Capital Finance include State Bank of India, HDFC Bank, and ICICI Bank, according to the Annual Report for FY21

Plans for growth, including branch expansion, of Indo-Star Capital Finance have come under a cloud after irregularities in its commercial vehicle loan portfolio came to light.

Deep Jaggi took charge in January as chief executive officer (CEO) of the NBFC, which is backed by private equity firm Brookfield.

Then the company had articulated plans to expand its network to 700-800 branches in the next four-five years, grow the loan book four-five times, and finance used cars and tractors.

Jaggi had joined the NBFC as chief business officer in October 2020.

R Sridhar, executive vice-chairman, relinquished office on completing a five-year term in April.

Meanwhile, lenders