Purple Finance Limited (PFL) has announced a significant development in its corporate governance structure. The Reserve Bank of India (RBI) has taken note of the company's proposal to appoint Mr. Sandeep Jindal as a Non-Executive Non-Independent Director.

Key Details of the Appointment

Next Steps in the Appointment Process

The appointment of Mr. Jindal is not yet finalized. Purple Finance Limited has outlined the following steps:

1. The proposal will be presented to the Board of Directors at the upcoming Board Meeting for consideration.
2. If approved by the Board, the appointment will then be subject to shareholder approval.

This move by Purple Finance Limited indicates the company's commitment to maintaining strong corporate governance practices and ensuring regulatory compliance. The RBI's noting of the appointment proposal is a crucial step in the process, particularly for financial institutions where regulatory oversight is stringent.

It's important to note that while the RBI has taken note of the proposal, the final appointment is contingent on both Board and shareholder approvals. This multi-step process underscores the company's adherence to corporate governance norms and shareholder interests.

Purple Finance Limited continues to keep its stakeholders informed about significant corporate actions, as evidenced by this timely disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investors and market watchers will likely keep a close eye on the forthcoming Board Meeting and subsequent shareholder approval process to see if Mr. Jindal's appointment is finalized, potentially bringing new perspectives to Purple Finance's leadership team.

Purple Finance Limited (PFL), a growing non-banking financial company (NBFC) focused on secured lending to MSMEs, has received a credit rating of IND BBB-/Stable from India Ratings and Research (Ind-Ra) for its bank loan facilities and non-convertible debentures (NCDs).

Rating Details

The rating agency has assigned the following ratings:

*Yet to be issued

Key Rating Drivers

Strengths

1. Adequate Capitalization: PFL has demonstrated its ability to raise capital through two successful rights issues, totaling INR 851.54 million.
2. Growing Franchise: The company's assets under management (AUM) have grown significantly from INR 305 million to INR 1,631 million as of September 2025.
3. Experienced Management: PFL's leadership team boasts extensive experience in the financial services sector.

Challenges

1. Modest Operational Scale: The company operates on a relatively small scale compared to industry peers.
2. Geographic Concentration: Maharashtra accounts for 46% of PFL's total AUM, indicating limited diversification.
3. Evolving Profitability: PFL reported a loss after tax of INR 16.20 million in Q2 FY26 and expects to break even in FY27.
4. Limited Portfolio Seasoning: With 68% of the portfolio originated within the past 12 months, the loan book is yet to undergo multiple credit cycles.

Financial Performance

As of September 2025, PFL reported:

Business Model

Purple Finance specializes in providing secured loans to MSMEs in Tier-II and Tier-III cities across six states. The company offers loans against residential or commercial property, with an average ticket size of INR 0.60 million and interest rates ranging from 18% to 24%.

Future Outlook

Ind-Ra's stable outlook reflects PFL's adequate capitalization and growth potential. However, the company's ability to scale operations, diversify its geographic footprint, and achieve sustainable profitability will be key factors to monitor.

As Purple Finance continues to expand, its performance in maintaining asset quality, broadening its funding base, and successfully replicating its business model across new geographies will be crucial for its long-term credit profile.