SBFC Finance Limited , a leading non-banking financial company (NBFC), has successfully completed its postal ballot process with shareholders overwhelmingly approving the new stock option policy. The company announced the voting results on December 15, marking a significant milestone in its employee incentive strategy and corporate governance.

Postal Ballot Results

The shareholders have approved the 'SBFC Stock Option Policy 2025 – I' through remote e-voting with an overwhelming majority. The postal ballot process concluded on December 14, with the scrutinizer's report published on December 15.

The voting was conducted entirely through remote e-voting facility provided by KFin Technologies Limited, with Ms. Jigyasa N. Ved of Parikh Associates serving as the scrutinizer for the voting process.

Stock Option Policy Details

The approved policy creates a pool of 1.21 crore employee stock options, designed to attract and retain top talent within the organization. The exercise price for these options will be determined based on the average closing price of the company's shares over the five trading days preceding the grant date.

Leadership Transitions

SBFC Finance has experienced significant changes in its leadership team during this period:

New Chief Credit Officer Profile

Mr. Sreenivas Mylavarapu brings extensive experience to SBFC Finance with over 29 years in banking across retail, MSME, agriculture, and microfinance segments. He previously served as General Manager & Business Head for Retail, Agri, and MSME Advances at Karnataka Bank Ltd., and held senior roles at Aditya Birla Housing Finance, Kotak Mahindra Bank, IDBI Bank, and State Bank of Hyderabad.

Recent Financial Performance

The company's strong financial metrics support these strategic initiatives:

Regulatory Compliance

The postal ballot was conducted in compliance with Sections 108 and 110 of the Companies Act, 2013, and Rules 20 and 22 of the Companies (Management and Administration) Rules, 2014. The process also adhered to Regulations 30 and 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The overwhelming shareholder approval of the stock option policy, combined with strategic leadership appointments and strong financial performance, positions SBFC Finance for continued growth in the competitive NBFC landscape. The company's commitment to employee incentivization through equity participation demonstrates its focus on talent retention and organizational development.

SBFC Finance Limited , a non-banking financial company (NBFC), has announced its unaudited financial results for the quarter and half-year ended September 30, 2025. The company's board of directors approved these results during a meeting held on November 1, 2025.

Key Highlights

• SBFC Finance reported a net profit of Rs 1.09 billion for the quarter, compared to Rs 840 million in the same period last year, marking a 30% increase.
• The company's interest income increased to Rs 3.8 billion from Rs 2.8 billion year-on-year.
• The company issued 3,76,240 equity shares during the quarter and 71,98,313 shares during the half-year to employees under stock option policies.
• An additional 1,05,000 equity shares were transferred from the employee welfare trust to eligible employees during the half-year.
• SBFC Finance raised Rs 200 crore through Non-Convertible Debentures (NCDs) in August 2025.

Financial Performance

For the quarter ended September 30, 2025, SBFC Finance reported the following results:

Asset Quality

As of September 30, 2025:

• Gross Non-Performing Asset (GNPA) ratio stood at 2.77%, slightly lower than the 2.78% reported in the previous quarter.
• Net Non-Performing Asset (NNPA) ratio was 1.51%, down from 1.57% in the previous quarter.
• The provision coverage ratio improved to 46.17% from 44.38% in the previous quarter.

The marginal improvement in asset quality metrics indicates better asset quality management by the company.

Capital Adequacy and Liquidity

• The company maintained a strong capital position with a Capital to Risk Assets Ratio (CRAR) of 34.05%.
• The Liquidity Coverage Ratio stood at 174.00%, indicating robust liquidity management.

NCD Issuance and Utilization

SBFC Finance raised Rs 200 crore through Non-Convertible Debentures in August 2025. As of September 30, 2025, Rs 101.90 crore of this amount has been utilized for onlending to secured micro, small and medium enterprises and gold loans. The company confirmed that it maintains sufficient security cover for its listed non-convertible debentures and is in compliance with regulatory requirements.

Employee Stock Options

The company continues to use employee stock options as a tool for talent retention and alignment of employee interests with those of the company. During the quarter, 3,76,240 equity shares were issued to employees under various SBFC Stock option policies.

Outlook

SBFC Finance has shown strong growth in revenue and profitability while maintaining a cautious approach to asset quality. The slight improvement in GNPA and NNPA ratios, along with an increased provision coverage ratio, suggests a focus on maintaining asset quality while pursuing growth.

The company's robust capital adequacy and liquidity position indicate its preparedness to capitalize on growth opportunities in the NBFC sector, particularly in lending to micro, small, and medium enterprises.

SBFC Finance's continued use of employee stock options and the recent NCD issuance demonstrate its focus on employee retention and diversifying its funding sources, which could support its growth plans in the coming quarters.