Poonawalla Fincorp Limited Rolls Out AI-Powered Underwriting with IIT Bombay

Poonawalla Fincorp Limited has taken another step toward modernizing its financial services by introducing an artificial intelligence-based credit underwriting system. The solution has been developed in collaboration with IIT Bombay. It aims to combine machine intelligence with human decision-making, making loan approvals faster and more efficient.

The launch of this new technology has been met with a positive response in the stock market. As of 11:02 am today, shares of Poonawalla Fincorp Limited were trading at ₹349, marking a rise of ₹14.20 or 4.24 percent on the National Stock Exchange (NSE).

Investors Welcome the AI Initiative

Investors were quick to react to the announcement. The rise in the company’s share price reflects growing confidence in Poonawalla Fincorp Limited’s digital-first approach. By bringing AI into its credit systems, the company is showing its focus on long-term efficiency and smarter operations.

This kind of investment in technology can directly contribute to lower turnaround times, improved approval accuracy, and better customer service. The stock market seems to agree with this direction.

AI Working Alongside Human Intelligence

The AI-based tool isn’t meant to replace people. Instead, it supports the company’s credit team by automating large portions of the decision-making process. The system uses Large Language Models and Machine Learning algorithms to review and process credit data.

With human oversight still in place, the tool enhances the accuracy of loan assessments. It’s designed to make the process faster while preserving the quality of decisions. According to internal estimates, credit managers’ productivity could increase by up to 40 percent in the retail lending segment.

Arvind Kapil Emphasizes AI’s Role in the Future


Poonawalla Fincorp

Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp Limited, commented on the launch of the system. He said, “At Poonawalla Fincorp we fully respect and understand the transformative impact of AI in reshaping the credit landscape.” His statement reflects the company’s readiness to adopt tools that help improve efficiency and customer satisfaction.

Under Arvind Kapil’s leadership, Poonawalla Fincorp Limited has consistently looked for innovative ways to improve its processes. The new AI model is another example of the company staying ahead of the curve in the non-banking finance sector.

A Result of Strong Industry-Academia Partnership

The AI underwriting tool is the result of a successful collaboration between Poonawalla Fincorp Limited and IIT Bombay. Dr. Pushpak Bhattacharyya of IIT Bombay stated that the initiative highlights how academic institutions can solve real-world business problems when they work closely with industry leaders.

This kind of partnership helps bridge the gap between research and application. It results in technology that is practical, tested, and capable of being implemented at scale in a corporate setting.

Plans to Advance the AI System Further

While the current system is already useful, the company plans to enhance it even more. In the next phase, Poonawalla Fincorp Limited aims to develop a self-learning version using deep learning technology. This version would be capable of continuous improvement without the need for manual intervention.

Once this upgrade is in place, the system will be able to adapt to changing patterns in credit data and become even more accurate over time. This would help automate decisions in real-time and allow credit officers to focus on high-value tasks.

National Presence and Diverse Offerings

Headquartered in Pune, Poonawalla Fincorp Limited operates across 18 Indian states and 2 Union Territories. As of December 31, 2024, the company reported total Assets Under Management (AUM) of ₹30,984 crore.

The company offers a range of financial products such as personal loans, consumer loans, pre-owned car loans, and business loans. It has also recently expanded into the commercial vehicle financing segment, reflecting its growth strategy and intent to diversify its portfolio further.

Improving Credit Services with Smart Technology

This AI-driven credit system will help reduce errors, flag inconsistencies, and speed up decision-making. It is expected to lower processing time and enhance overall customer experience. The combination of data-driven insights and human expertise makes it a balanced solution.

Poonawalla Fincorp Limited is focused on delivering loans faster without compromising the quality of credit checks. The solution also helps ensure that loan approvals comply with regulatory and internal standards.

Setting a Benchmark for the Industry

With this move, Poonawalla Fincorp Limited is not only updating its technology but also setting an example for the industry. By using AI and data science in credit processing, the company is shaping what the future of lending could look like in India.

This smart underwriting model is a step toward more accurate, transparent, and customer-friendly lending practices. It shows that technology, when applied thoughtfully, can bring measurable improvements to how financial services are delivered.

Final Thoughts

Poonawalla Fincorp Limited’s decision to launch an AI-powered credit evaluation system marks a strong move toward digitization and efficiency. With the guidance of Arvind Kapil and technical expertise from IIT Bombay, the company is laying the foundation for long-term innovation in financial services.

As the market shifts toward faster and smarter lending models, Poonawalla Fincorp Limited is showing that it’s ready for the next phase of growth.

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