Not sure but SCF (supply chain financing) is a low yielding, short term loan. Since the capital itself is scarce in this high interest rate environment they would like to focus on higher yield retailer financing(including micro enterprise financing).
This is what everyone is doing in the peer group. This could have limited short term impact on the AUM but will result in the higher ROA in quarter to come. They have a larger data set now to assess the credit worthiness of MSMEs and could be leveraged to acquire quality customer.
This aligns with the management guidance and commentary. Having said that, let’s see what management has to say in the concall.
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