SBFC Finance Soars in Q4, ending year on a high

Mumbai, Apr 29: SBFC Finance, India’s fasted MSME Lender, has reported strong numbers thus ending their successful year on a high. The Company has reported y-o-y growth of 38% in AUM with consistent asset quality. The full year profit reported by the company was 237 crore which has increased 58% year on year. The Revenue from Operations rose by 39% during the year in comparison to FY 2023. The NBFC has done its IPO in August which had a strong opening with its shares being listed at a 44% premium. In the First year post listing.

The company’s asset quality has gradually improved. The Gross Non-Performing Asset (NPA) ratio is at 2.43% as at March 31, 2024 in comparison to 2.57% same time last year. During the period, the provisioning coverage ratio (PCR) improved to 45% from 39% at the same time last year.

SBFC is a non-deposit taking NBFC that offers Secured Micro, Small, and Medium Enterprises (MSME) and Gold Loans. The Company operates in the ticket size between Rs 5 lakh and Rs 30 lakh lending to Small business owners, Self-employed individuals, salaried and working class individuals. The company is a PAN India MSME player which operates through 183 branches in 149 cities across 16 states and two union territories. The company has shown a rapid growth in the loan book over the past three years spread across the country with no geographic concentration. The South and the North parts of the country contribute 39.4% and 32.7% to the AUM respectively. The West and the East combined contributes 27.9% of the AUM.

SBFC has raised a Total Borrowings of Rs. 1,720 crores from lenders during the year alongside the equity raise of 750 crores. The Company was upgraded to AA- (Stable) by India Ratings in the current financial year demonstrating its ability to raise equity and debt, its robust growth and stable asset quality.