SBFC Finance Limited , a leading non-banking financial company (NBFC), has announced significant developments in its corporate structure and employee incentive programs. The company's Board of Directors has approved a new stock option policy and reported key leadership changes, signaling a strategic move to strengthen its position in the financial services sector.

New Stock Option Policy

The Board has given the green light to the 'SBFC Stock Option Policy 2025 – I', creating a pool of 1.21 crore employee stock options. This decision, subject to shareholder approval through postal ballot, aligns with the company's efforts to attract and retain top talent. 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:

1. Resignation of Internal Audit Head: Mr. Shanesh Jain, Head of Internal Audit, has stepped down from his position, citing relocation to the UAE for personal reasons.

2. Departure of Credit Head: Mr. Viney Vaid, who served as Head of Credit for eight years, has resigned due to personal reasons.

3. New Chief Credit Officer: To fill the vacancy in credit leadership, the company has appointed Mr. Sreenivas Mylavarapu as the new Chief Credit Officer.

Profile of New Chief Credit Officer

Mr. Sreenivas Mylavarapu brings a wealth of experience to SBFC Finance:

• Over 29 years of banking experience across retail, MSME, agriculture, and microfinance segments
• Previously served as General Manager & Business Head for Retail, Agri, and MSME Advances at Karnataka Bank Ltd.
• Held senior leadership roles at Aditya Birla Housing Finance, Kotak Mahindra Bank, IDBI Bank, and State Bank of Hyderabad
• Known for expertise in business growth, credit management, and operational excellence
• Skilled in both secured and unsecured lending

Financial Performance Highlights

While the article focuses on corporate updates, it's worth noting some key financial metrics from SBFC Finance's recent performance:

These figures indicate robust growth and improved operational efficiency for SBFC Finance.

Conclusion

The approval of the new stock option policy and the strategic leadership changes demonstrate SBFC Finance's commitment to strengthening its organizational structure and incentivizing its workforce. With the appointment of Mr. Mylavarapu as Chief Credit Officer, the company is poised to leverage his extensive experience in the banking and finance sector. These developments, coupled with the company's strong financial performance, position SBFC Finance for continued growth in the competitive NBFC landscape.

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.