Regency Fincorp Limited (formerly Regency Investments Limited) is a **Non-Systemically Important Non-Deposit Taking Non-Banking Financial Company (NBFC)**. Registered with the **Reserve Bank of India (RBI)** under Section **45-IA** of the RBI Act, 1934, the company operates as a **Base Layer NBFC** under the RBI’s **Scale-Based Regulatory (SBR) Framework**. Headquartered in **Zirakpur, Punjab**, the company is currently undergoing a strategic transformation from a traditional lender into a diversified financial services provider with interests in digital payments and green infrastructure financing. --- ### Strategic Pivot: Digital Payments and Green Infrastructure Regency Fincorp is aggressively diversifying its revenue streams beyond traditional credit to capture emerging opportunities in the Indian fintech and sustainability sectors. * **Digital Payment Ecosystem:** In **September 2025**, the company expanded its constitutional mandate to include **Prepaid Payment Instruments (PPIs)**. This includes the development of electronic wallets, **UPI/QR-based payment solutions**, and payment aggregation services. * **Green Finance Initiative:** The company has established a **Green Bond Committee** to oversee sustainable investments. Its flagship project involves a partnership with **Cosmos Power Technologies** to finance **Hybrid Renewable Energy Systems** (solar, wind, and battery storage) across **100 telecom sites** in Maharashtra. * **Fintech Integration:** The company acquired **Regency Fin Technology Limited** for **INR 10 Lakh** to serve as a dedicated subsidiary for auxiliary digital financial services. * **Proprietary Lending Platform:** A new digital platform is being deployed to automate loan processing and utilize **AI-based credit scoring** to enhance underwriting precision. --- ### Core Lending Operations and Market Reach The company’s primary business remains its credit portfolio, which is increasingly shifting toward secured assets and underserved demographics. * **Target Demographics:** Focus remains on **women entrepreneurs**, **MSMEs**, and individuals in **Tier II and Tier III cities**. * **Sectoral Focus:** Credit is primarily deployed for **agriculture**, allied activities, and small business expansion. * **Product Mix:** While maintaining a presence in personal and education loans, there is a strategic shift toward **MSME Secured Loans** to align with national economic trends. * **Geographic Expansion:** The company is rapidly expanding its physical footprint. Recent branch openings include **Chhutmalpur (Uttar Pradesh)** in **November 2024**, alongside new offices in **Raikot, Ludhiana, Jalandhar, Jagraon (Punjab)**, and **Yamuna Nagar (Haryana)**. Future expansion is targeted at **Rajasthan**. --- ### Financial Performance and Growth Trajectory Regency Fincorp has demonstrated a sharp upward trend in profitability and revenue, supported by a significantly strengthened capital base. #### Quarterly Performance (Q3 FY 2025-26) | Particulars | Q3 FY 2025-26 | Q3 FY 2024-25 | YoY Growth | | :--- | :--- | :--- | :--- | | **Total Income** | **₹914.48 Lacs** | **₹539.08 Lacs** | **69.6%** | | **Profit Before Tax (PBT)** | **₹459.66 Lacs** | **₹137.53 Lacs** | **234.2%** | | **Profit After Tax (PAT)** | **₹340.44 Lacs** | **₹102.92 Lacs** | **230.7%** | #### Annual Financial Trends | Financial Year | Revenue (₹ in Lacs) | Net Profit (₹ in Lacs) | Basic EPS (₹) | | :--- | :--- | :--- | :--- | | **FY 2024-25** | **2,166.43** | **497.57** | **0.78** | | **FY 2023-24** | **1,573.28** | **196.69** | **0.51** | | **FY 2022-23** | **1,352.19** | **92.50** | **0.87** | #### Key Efficiency and Asset Quality Ratios (as of Dec 2025) * **Capital Risk Adequacy Ratio (CRAR):** **70.38%** (Significant improvement from **13.71%** in FY23). * **Net Profit Ratio:** **40.87%**. * **Return on Equity (ROE):** **12.33%**. * **Gross NPA (GNPA):** **1.44%** (FY24). * **Net NPA (NNPA):** **0.35%** (FY24). * **Current Ratio:** **2.84**. --- ### Capital Structure and Funding Strategy To support its **INR 1,000 Crore** borrowing ambition, the company has executed several high-impact capital-raising actions. * **Equity Expansion:** The **Authorized Share Capital** was increased from **INR 50 Crore** to **INR 95 Crore** in **October 2024**. * **Preferential Allotments:** Raised approximately **INR 96.71 Crore** through the issuance of **4.39 Crore** warrants at **INR 22** each. In **December 2025**, trading approval was granted for **4,086,162** shares following warrant conversions. * **Debt Instruments:** * Issued **INR 25 Crore** in Secured, Rated, Redeemable **Non-Convertible Debentures (NCDs)** in **January 2026**. * Proposed further NCD/Commercial Paper issuances up to **INR 500 Crore** for **FY 2026-27**. * **Debt-to-Equity Conversion:** Shareholders approved converting up to **INR 13 Crore** of existing loans from **Regency Digitrade Private Limited** and **Max-Bio Biosciences** into equity to optimize the balance sheet. --- ### Governance, Risk Management, and Compliance The company has formalized its risk oversight to meet the stringent requirements of the RBI’s SBR directions. * **Board Oversight:** The Board consists of **8 Directors**, including **4 Independent Directors**. Key leadership includes **Mr. Sarfaraz Mallick** (CFO & Executive Director) and **Mr. Ashish Kamra** (Whole-Time Director). * **Risk Committee:** A **Risk Management Committee (RMC)** was constituted on **September 2, 2024**, to monitor Credit, Operational, Liquidity, and Regulatory risks. * **Internal Controls:** Term loans are secured by a **first and exclusive charge** over current assets and book debts. The company maintains a **Net Owned Fund** in compliance with RBI Master Directions and transfers **20%** of net profits to a **Statutory Reserve** annually. #### Identified Compliance and Operational Risks | Risk Area | Detail/Observation | | :--- | :--- | | **Regulatory Filings** | Historical delays in notifying the RBI of Director appointments and filing **Form CHG-1** for specific loans. | | **Board Limits** | One Independent Director currently exceeds the statutory limit of **10 public company directorships**. | | **Macro Environment** | Exposure to **inflation (5.4% CPI)** and high borrowing costs which may impact the lower-income borrower segment. | | **Market Competition** | Intense pressure from fintech startups and established NBFCs in the retail and MSME space. | | **Listing Status** | While active on the **BSE**, the company's status on the **Calcutta Stock Exchange** remains **Suspended**. |