In India’s fast-evolving financial services landscape, where digital disruption and compliance pressures are reshaping NBFC strategies, Capital India Finance Limited is emerging as a unique player. The company is building a lending institution driven not only by data and technology, but by empathy, emotional intelligence, and a people-first culture.

In this SMEStreet Exclusive Interview, Mr. Pinank Shah, CEO of Capital India Finance Limited, sits down with Faiz Askari to discuss his extraordinary journey across India’s top financial institutions, his philosophy on building a sustainable lending organisation, and Capital India’s sharp focus on MSMEs through a human-centric lens.

The Interview

A Journey Rooted in Lending, Leadership & Reinvention

Faiz Askari (FA): You have worked with HDFC, IndiaBulls and Dhani before leading Capital India. Please share your journey.

Pinank Shah (PS): I began my career in retail lending at HDFC. Coming from a Gujarati business family, flexibility and business instincts were always around me. After a year, I was ready to move on—but destiny intervened. The nine years that followed were transformative. At one stage, I was managing an ₹80,000 crore corporate portfolio, one of the largest in India.

Later, at IndiaBulls Housing Finance, I moved to treasury—fundraising, investor relations, and balance sheet management. We scaled the balance sheet from ₹20,000 crore to ₹1.2 lakh crore.

Then came Dhani, one of India’s earliest fintech app-based lending platforms. We built it into a massive franchise—9 million customers, 25,000 employees, and multiple verticals including stockbroking, prepaid instruments, tele-consultation, and e-pharma.

Post-COVID, I chose to return to my core—NBFC lending—and joined Capital India Finance Limited.

A Different Kind of Corporate Culture — “Dil Se Ghar Tak”

FA: You speak passionately about emotional intelligence and culture. How does that shape Capital India?

PS: We at Capital India are building a human-first institution. We created a program called “Dil Se Ghar Tak.”

Instead of handing awards in offices, our CXOs visit the homes of high-performing employees, honouring them in front of their parents, spouses, and children. The joy and pride this creates cannot be replicated by monetary incentives.

This fosters loyalty, ownership, and a bond money cannot buy. If we want to build an institution that lasts decades, the foundation must be emotional as much as structural.

Capital India’s Core Focus: MSME Lending with Strong Fundamentals

FA: Where does Capital India stand today and what is your core lending focus?

PS: Our RBI license dates back to 1994, but the company was revived by current promoters in 2017. Initially, we were in wholesale real estate lending, but after IL&FS and DHFL, the ecosystem changed. Today, our focus is crystal clear:

• 80% of the loan book is secured

• 20% unsecured, mostly legacy products now being phased out

• Retail & MSME loans are our core pillars

• 41+ branches across 8 states, expanding to 45 branches by April

• Plan to reach 100+ branches in the next 18 months

We serve micro, small, and medium businesses—ranging from a small dairy owner in rural Rajasthan seeking ₹5–10 lakh against property, to medium-sized businesses in metros using home collateral to expand.

Our AUM crossed ₹1,100 crore recently, and we are now on steady, high-quality growth after cleaning legacy books.

Assessing Real India Beyond Paperwork

FA: MSMEs often have informal cash flows. How do you evaluate them?

PS: Traditional lenders rely on balance sheets and tax returns. But real India doesn't operate fully on paper.

We built imputed income models across 100+ industries—from pen manufacturers to kirana stores and dairy farms. We analyse:

• Daily deposits

• UPI credits

• Seasonal spikes

• GST patterns

• Stock movement

• Industry-specific margins

For instance, if a trader had daily sales of ₹20,000 last year but shot up to ₹1 lakh during Diwali, we note this seasonal rhythm.

This gives us a true picture of the borrower’s actual cash flow—not just the declared figures.

AI vs. Human Judgment in Lending

FA: How do you integrate AI without losing the human essence of lending?

PS: AI is a powerful tool—but a tool nonetheless. We use AI for:

• Filtering thousands of job applications

• Automating HR responses

• Analytical report generation

• Image-based stock scanning at shops

• Cost-efficient collections

But AI cannot replace human instinct. There is a concept you used beautifully—“kayapha”, the demeanour or inner aura of a person. A seasoned banker or police officer understands this intuitively.

Pure automation cannot evaluate kayapha.

In lending, a blend of AI intelligence + human intuition is the future.

Collections: Technology + Empathy

FA: Collections are becoming AI-driven. How do you see this balance evolving?

PS: In unsecured lending, cost of collection is the biggest challenge. AI reduces the cost of reaching customers, prioritising cases, and handling deep delinquency buckets.

But empathy matters. The real work begins before the first EMI—educating borrowers, reminding them of obligations, and helping them understand consequences.

For secured lending, customers default last because their homes are collateral. But for unsecured loans, AI improves efficiency, while human behaviour science improves outcomes.

Both are needed.

Building a High-Caliber Board

FA: You recently added strong governance leaders to your board.

PS: Yes, we have strengthened our board with exceptional talent:

• Mr. Surendra Rana, former DMD, SBI

• Former RBI Regional Directors

• A Major General from the Indian Army

• Renowned chartered accountants and banking veterans

This mix of regulatory experience, defence discipline, and financial expertise gives us the backbone needed for long-term credibility and compliance.

Leadership by Example

Mr. Shah is known for personally meeting distressed customers during branch visits.

PS: When I travel, I don’t only meet satisfied borrowers. I meet customers who are upset or seeking additional funds. I sit with them, break down their cash flows, and explain why we can or cannot extend credit.

This sets an example for my teams. Lending is not about selling a loan—it’s about understanding lives and livelihoods.

Conclusion: The Future of Human-Centric Lending

Capital India Finance, under Mr. Pinank Shah’s leadership, represents a new class of NBFC—one that embraces technology but is rooted deeply in humanity.

His philosophy is simple yet powerful:

**“Technology makes lending faster.

Humanity makes lending trustworthy.”**

As India’s MSME sector expands, this hybrid model of emotional intelligence + analytical rigor may well become the template for the next generation of financial institutions.