Gunit Chadha, the 55 year old former chief executive of Deutsche Bank, Asia Pacific, is returning to Indian financial services sector after five years, floating a non-banking finance company.
The company christened APAC Financial Services, will have initial investment of more than Rs 100 crores in equity from Chadha and the senior management team which he is assembling, said two people familiar with the investment plans.
APAC has hired Ambit Capital run by Ashok Wadhwa to raise another Rs 400 crore from investors as the company plans to have enough capital buffer to begin with even though it could be done with lesser capital, said those people who did not want to be identified.
Chadha confirmed to ET his new venture in financial services, but declined to discuss investments and the plans to raise capital. Initial focus of the firm would be on funding affordable housing in smaller towns, and structured finance to medium sized companies which are being deprived of credit due to stress in the banking sector.
“Our aim is to be in the lending space where on the one end you have the backing of collateral which is secured lending, and at the other end have assets that yield like unsecured loans,” said Chadha. “There is lack of competitive intensity in both affordable housing and structured finance relative to the opportunity.” Indian financial services industry is seeing huge interest with the potential to lend surging amid a growing population and an underserved market. Banks are focused mostly on citi ..