Shyam Maheshwari SSG

Shyam Maheshwari SSG is the CEO, Founder, and Partner of SSG Capital Management (Singapore) Pte. Limited, where he leads the firm’s investment activities in India. With over 17 years of expertise in deal sourcing, analysis, and investing, he has played a key role in shaping SSG’s strategies. Prior to founding SSG, Maheshwari was a Senior Member of Lehman Brothers’ Asia Special Situations Group, where he spearheaded principal investments in India and initiated ventures across Asia, particularly in the mining and power sectors in Indonesia.

Shyam Maheshwari on the COVID-19 Impact and India's Credit Landscape

As India’s pandemic-stricken economy and businesses navigate an uncertain recovery, private credit is emerging as a vital driver of business expansion and long-term sustainable growth. Traditional lenders, particularly Public Sector Banks (PSU banks), have played a critical role in stabilizing the country during the economic challenges of 2020. However, they are expected to face increasing pressure in the coming years. According to Shyam Maheshwari, India’s credit market has long been dominated by banks and non-bank financial companies (NBFCs), starting with PSU banks and later transitioning to private banks. Despite this, the credit-to-GDP ratio remains relatively modest for a nation at India’s stage of economic growth. As the economy grows and becomes more credit-intensive, the demand for financing will increase significantly.

Maheshwari emphasizes that banks and NBFCs may not be able to meet this rising demand, highlighting the crucial role private credit must play in driving economic growth.

While NBFCs have faced their own challenges over the past two years, Indian businesses require substantial lending support to remain competitive in domestic and international markets. Shyam Maheshwari SSG underscores private credit as one of the fastest-growing alternative asset classes globally, a trend that has been gaining momentum over the last 4-5 years. The 2009 global financial crisis marked a shift, with a growing portion of debt capital flowing through asset managers instead of banks. Today, with bank lending shrinking due to increased regulations, independent asset managers are stepping in to fill the gap, a trend seen worldwide.

In India, the ongoing non-performing assets (NPA) crisis and the aftermath of the Infrastructure Leasing & Financial Services (IL&FS) crisis have created a significant need for credit, not only for growing businesses but also for distressed ones. Maheshwari notes that NBFCs are increasingly occupying this space, while alternative asset managers are entering the market. Though private credit is still relatively small in India, Maheshwari sees enormous potential for growth in the country’s $3 trillion economy, which is expanding at a rate of 6-7%.

The presence of credit bureaus in India will also help enhance the efficiency of credit systems. Maheshwari predicts a substantial opportunity to invest between $25 billion and $100 billion in private credit over the next 4-5 years, potentially making it a larger market than private equity. With approximately $290 billion of dry powder available for private credit globally, Maheshwari views this as a significant opportunity for India’s economy, acting as a catalyst for unlocking new possibilities for Indian businesses as they navigate the evolving economic landscape.