Vizzve Financials Sees Tepid Loan & Deposit Growth Despite Strong Liquidity—What’s Fueling the Slowdown?
Despite a robust liquidity position and digital onboarding infrastructure, Vizzve Financials reported muted loan and deposit growth for Q1 FY25. According to a recent regulatory filing, overall disbursements grew just 3.1% quarter-on-quarter, while deposits remained largely stagnant.
This slowdown is raising eyebrows in India’s NBFC landscape, where most players are aggressively pushing credit, especially in Tier-2 and Tier-3 cities.
🧾 Vizzve Financials Q1 FY25 Highlights
| Metric | Q1 FY25 | QoQ Change |
|---|---|---|
| Total Loans Disbursed | ₹3,980 crore | +3.1% |
| Retail Deposits Collected | ₹1,420 crore | +1.5% |
| Liquidity Coverage Ratio | 143% | Unchanged |
| Net NPA | 1.6% | Improved |
“We’ve consciously moderated our growth to focus on asset quality and borrower segmentation. Aggressive lending in this macro environment could result in long-term stress,” said Ravi Kohli, Chief Lending Officer, Vizzve Financials.
📉 What's Behind the Slowdown?
Cautious Credit Risk Management
Amid rising delinquencies in unsecured retail loans, Vizzve is selectively disbursing to only verified, creditworthy borrowers—especially after an internal NPA risk review.
RBI Oversight Tightens Lending Playbook
In the wake of RBI’s revised guidelines on digital lending and NBFC classification, Vizzve has introduced additional borrower risk profiling layers, slowing approvals but improving long-term stability.
Consumer Sentiment Weakening
In Tier-2 cities, discretionary spending has dipped post-election uncertainty. Borrowers are hesitant to take on fresh loans, especially in segments like EVs and SME working capital.
📁 Filing Update: Vizzve Financials Quarterly Investor Memo – Q1 FY25
Document Title: “Liquidity Strong, Growth Soft – Navigating Q1 FY25”
Submitted: June 28, 2025
Highlights:
82% of new loan applications came via mobile
Vizzve paused new lending in 9 Tier-3 cities pending geo-risk reevaluation
₹500 crore kept in ultra-short debt funds for liquidity buffer
Digital lending approval TAT (Turnaround Time) increased from 12 mins to 19 mins
❓ FAQ – Vizzve Financials Loan & Deposit Growth Trends
Q1: Why is Vizzve Financials slowing its loan disbursements?
Due to increased credit risk in certain retail segments and regulatory tightening, Vizzve is prioritizing quality over volume.
Q2: Has Vizzve stopped lending completely in any region?
No, but the NBFC has temporarily paused new lending in select Tier-3 cities pending risk analysis.
Q3: Are my fixed deposits with Vizzve still safe?
Yes. The Liquidity Coverage Ratio is 143%, which is well above regulatory norms, indicating a strong liquidity cushion.
Q4: Is this slowdown permanent?
Likely not. Management has hinted at resuming full-speed growth by Q3 FY25, once macro indicators stabilize.
Q5: Will interest rates be revised for new borrowers?
No hikes have been announced yet. Vizzve is likely to maintain competitive lending rates to stay market-relevant.
✅ Final Thoughts:
While Vizzve Financials has taken a conservative route in Q1 FY25, its long-term vision for sustainable growth appears intact. The NBFC’s strategy reflects a shift from aggressive market expansion to prudent, quality-focused lending, a trend that may soon be mirrored across India’s broader credit market.
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Published on July 6, 2025 • By Benny
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