SBFC Finance Limited has received rating affirmation from India Ratings and Research Private Limited, maintaining its IND AA-/Stable credit rating across key financial instruments. The rating agency announced the affirmation on April 16, 2026, covering both bank loan facilities and non-convertible debentures totaling significant amounts.

Rating Affirmation Details

India Ratings affirmed SBFC Finance's credit ratings across two major instrument categories:

The NCDs carry ISINs INE423Y07104 and INE423Y07138, with the rating verification completed on May 27, 2025, and August 22, 2025, respectively.

Financial Performance and Capitalisation

SBFC Finance demonstrates robust financial metrics supporting the rating affirmation. The company's tangible net worth reached ₹32.9 billion in 9MFY26, showing consistent growth from ₹29.3 billion in FY25 and ₹25.2 billion in FY24. The loan book expanded to ₹90.7 billion in 9MFY26 from ₹75.0 billion in FY25, while assets under management grew to ₹104.8 billion.

Business Operations and Market Presence

The company operates through a network of 230 branches across 17 states and two union territories, covering 181 cities in India. SBFC Finance focuses primarily on two key secured products: loan against property catering to micro, small, and medium enterprises, and loans against gold. Secured MSME loans comprised 81% of AUM in 9MFY26, while loans against gold constituted 19%.

The company maintains granular lending with average ticket sizes of ₹1.0 million for secured MSME loans and ₹0.1 million for loans against gold as of December 2025. SBFC continues focusing on traders and retail customer profiles in its MSME segment, with ticket sizes less than ₹3 million and loan-to-value ratios below 70%.

Asset Quality and Risk Management

SBFC Finance maintains stable asset quality metrics with gross non-performing assets at 2.71% in 9MFY26, compared to 2.74% in FY25. The company has strategically shifted toward better profile borrowers, with customers having CIBIL scores above 700 increasing to 87.3% from 82.3% over FY23-9MFY26. The provision coverage ratio improved to 46.2% in 3QFY26 from 45.7% in FY25.

Funding Profile and Liquidity

As of December 2025, SBFC Finance's funding composition includes bank loans at 47.4%, external commercial borrowings at 19.3%, co-origination at 15.9%, and non-convertible debentures at 12.1%. The company maintains relationships with approximately 32 lenders and had unencumbered cash and liquid investments of ₹11.48 billion at end-December 2025, adequate to meet debt and operating expenses outflows of ₹10.80 billion for January-March 2026.

Rating Outlook and Monitorables

India Ratings expects SBFC Finance to continue growing its franchise while maintaining focus on secured products and profitability buffers. Key rating monitorables include the company's ability to maintain stable asset quality with portfolio seasoning, diversify funding across various instruments, and ensure senior management stability. The agency noted recent senior management changes but highlighted the presence of established second-line management and institutionalised approaches across functions.

SBFC Finance Limited has notified stock exchanges regarding the updated list of authorized Key Management Personnel (KMPs) responsible for determining materiality of events and information under SEBI regulations. The communication, dated 1st April, 2026, was addressed to both the National Stock Exchange of India Limited and BSE Limited.

Leadership Restructuring

The notification references earlier intimations dated 24th January, 2026 and 3rd February, 2026, which announced significant leadership changes within the organization. Mr. Mahesh Dayani (DIN: 06561389) has been re-designated as Managing Director & CEO, while Mr. Aseem Dhru (DIN: 01761455) has assumed the role of Executive Vice-Chairman, with both appointments taking effect from 1st April, 2026.

Authorized Officials for Material Disclosures

The company has designated four KMPs as authorized officials for determining materiality of events and making disclosures to stock exchanges under Regulation 30(5) and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

Contact Information and Compliance

The primary contact details for compliance matters are provided through Mr. Aseem Dhru's office, located at Unit No: 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East) Mumbai - 400 059. The contact number is 022-67875300, with correspondence directed to complianceofficer@sbfc.com .

Regulatory Adherence

This intimation demonstrates the company's commitment to maintaining transparency and regulatory compliance. The notification has been uploaded on the company's website at www.sbfc.com/investors , ensuring accessibility for all stakeholders. The document was digitally signed by Narayan Barasia, Chief Financial Officer, on 1st April, 2026, confirming the official nature of these appointments and authorizations.