Real Touch Finance Limited (**RTFL**) is an Indian **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)**. Classified as a **Base Layer NBFC** (Non-Deposit taking), the company operates as a specialized **Loan Company** catering to underserved segments, including self-employed individuals, micro-enterprises, and the real estate sector. RTFL is a subsidiary of **M/s. Ultraplus Housing Estate Private Limited** (**54.12%** stake) and is backed by the **Khivraj Group**, a diversified conglomerate with interests in automobile dealerships and infrastructure. --- ### **Strategic Market Positioning & Product Portfolio** RTFL focuses on high-yield lending segments where traditional banking penetration is often limited. The company’s credit solutions are diversified across five primary pillars: * **Loan against Property (LAP):** Mortgage-backed lending for both business expansion and personal requirements. * **SME & Structured Finance:** Targeted credit facilities for **Micro and Small Enterprises (MSEs)** to support working capital and growth. * **Real Estate Sector Financing:** Project-specific financing and developer funding, leveraging the promoter group's expertise in the sector. * **Personal & Housing Loans:** Credit for individuals, specifically focusing on house renovations and extensions. * **Impact Lending Support:** Strategic funding provided to other NBFCs operating in socially responsible sectors, including **education, healthcare, and clean energy**. --- ### **Operational Infrastructure & Regional Footprint** While RTFL maintains its registered headquarters in **Kolkata**, its primary operational and corporate hub is located in **Chennai**. * **Branch Rationalization (2026):** In **April 2026**, the company executed a strategic consolidation by closing several Tamil Nadu branches (including **Kancheepuram, Villupuram, and Tiruvannamalai**). * **Centralized Service Model:** Operations have transitioned to a centralized model managed through the **Corporate Branch Office in Nandanam, Chennai**, to improve efficiency and oversight. * **Geographical Concentration:** The portfolio remains heavily weighted toward **Southern India**, with **Tamil Nadu** accounting for approximately **43%** of total exposure. Other operating regions include **Maharashtra, Delhi, and Rajasthan**. --- ### **Capital Structure & Funding Strategy** RTFL is currently executing a multi-pronged strategy to scale its loan book by significantly expanding its borrowing powers and diversifying its debt instruments. **Key Borrowing & Capital Metrics:** * **Aggregate Borrowing Limit:** Increased from **₹200 Crores** to **₹500 Crores** (Approved Sep 2023). * **Credit Rating:** Assigned **IVR BBB/Stable** by Infomerics Ratings (July 2025) for **₹100 Crore** in long-term bank facilities. * **Debt Instruments:** * **Optionally Convertible Debentures (OCDs):** **₹22 Crores** (11% interest) allotted to **Khivraj Motors Private Limited** in June 2024. * **Subordinated Debt:** **₹20 Crores** in 9% NCDs with a **61-month** tenure (Approved Feb 2024). * **General NCD Program:** A shelf limit of **₹100 Crores** for private placements of secured, redeemable NCDs. * **Security & Collateral:** Term loans are secured by the hypothecation of book debts (minimum **1.25x coverage**), corporate guarantees from promoters, and an equitable mortgage on **18,312 sq. ft.** of commercial land in Chennai. --- ### **Financial Performance & Asset Quality** The company has demonstrated robust top-line growth, with Gross Income increasing by **81%** in FY 2023-24. | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Gross Income** | - | **₹18.74 Crore** | **₹10.35 Crore** | | **Profit After Tax (PAT)** | - | **₹2.63 Crore** | **₹2.62 Crore** | | **Assets Under Management (AUM)** | **₹227.53 Crore** | **₹189.44 Crore** | - | | **Tangible Net Worth** | **₹97.05 Crore** | **₹91.83 Crore** | - | | **CRAR (Capital Adequacy)** | **25.81%** | **21.54%** | **31.08%** | | **Gross NPA (GNPA)** | **1.06%** | **1.28%** | **0.01%** | | **Net NPA (NNPA)** | **0.74%** | **1.15%** | - | * **Regulatory Compliance:** RTFL maintains a **Capital Adequacy Ratio (CRAR)** well above the regulatory minimum. In accordance with **Section 45IC of the RBI Act**, the company consistently transfers **20% of profits** to a Statutory Special Reserve. * **Asset Quality Management:** The company utilizes an **Expected Credit Loss (ECL)** framework (Stage 1, 2, and 3) based on **Probability of Default (PD)** and **Loss Given Default (LGD)** to manage impairments. --- ### **Growth Catalysts & Future Strategy** RTFL is transitioning toward a higher-leverage model supported by new partnerships and talent retention initiatives: * **Co-Lending Model (CLM):** As of **January 2025**, the company is entering co-lending arrangements with other RBI-registered NBFCs to optimize capital allocation and expand market reach. * **Inter-Corporate Support:** The Board is authorized to provide loans or guarantees up to **₹500 Crores** to group entities to support core business activities. * **Employee Stock Option Plan (ESOP 2024):** To align leadership with long-term value, RTFL created a pool of **6,34,635 options** (**5% of equity**). An initial grant of **2,52,934 options** was issued in July 2024 with a 1-to-5-year vesting schedule. * **Leadership Continuity:** **Mr. Gopal Sridharan** has been re-appointed as **Whole-Time Director** through **January 2030**, ensuring management stability during the growth phase. --- ### **Risk Management & Governance Framework** RTFL operates under an **Enterprise Risk Management (ERM)** framework that utilizes **Key Risk Indicators** and **Heat Maps** to monitor operational, credit, and market risks. * **Operational Challenges:** The company faced the resignation of its Statutory Auditor (**M/s. P.D Randar & Co**) in **July 2025**, citing operational difficulties stemming from the distance between the Kolkata headquarters and the Chennai operational hub. * **Digital & Cyber Risk:** As the company adopts **API-based integrations** and **data-driven credit models** to compete with fintechs, it has heightened its focus on **Information Cyber Security** and fraud prevention. * **Liquidity Management:** The company monitors liquidity through stock ratios and maintains **zero exposure** to Commercial Papers. However, short-term liabilities as a percentage of total liabilities rose significantly to **55.03%** in FY 2024-25. * **Related Party Transactions:** All transactions with group entities (e.g., **Khivraj Automobiles and Infrastructure**) are conducted at **arm’s length** and are strictly monitored under **Section 188** of the Companies Act.