**Dar Credit & Capital Limited (DCCL)** is a **Base Layer, Non-Deposit Taking Non-Banking Financial Company (NBFC-ND-BL)** with a **31-year legacy** in the Indian credit market. Headquartered in **Kolkata** with a significant regional presence in **Jaipur**, the company specializes in financial inclusion for **underbanked, underserved, and low-income segments**. DCCL bridges the credit gap for municipal employees, small-scale vendors, and women entrepreneurs who often fall outside the purview of traditional banking. --- ### **Strategic Market Positioning & Product Verticals** DCCL operates a diversified portfolio of secured and unsecured loan products, primarily targeting the "bottom-of-the-pyramid" workforce. The company maintains a standard ticket size of **₹50,000 to ₹5 lakh**, extending up to **₹10 lakh** for high-quality borrowers. | Product Category | Primary Target Audience | Ticket Size | Tenure | Loan IRR (p.a.) | | :--- | :--- | :--- | :--- | :--- | | **Personal Loans** | **Class-IV Municipal Employees** (Cleaners, sweepers, peons) | **₹50,000 – ₹5,00,000** | **36 – 60 Months** | **20% – 24%** | | **Unsecured MSME** | Rural/Semi-urban entrepreneurs & women vendors | **₹10,000 – ₹2,00,000** | **12 – 24 Months** | **25.5% – 27%** | | **Secured MSME** | Small business owners (Asset-backed) | **₹50,000 – ₹5,00,000** | **Up to 36 Months** | **24% – 27%** | * **The Municipality Niche:** A cornerstone of DCCL’s business is lending to stable-income municipal employees in **Rajasthan, Madhya Pradesh, and Gujarat**. This segment benefits from direct salary deductions, resulting in a superior risk profile and **zero historical write-offs**. * **MSME Focus:** Targeted at entrepreneurs in **West Bengal, Bihar, and Jharkhand** who exceed MFI income restrictions but lack the collateral required by commercial banks. --- ### **Operational Infrastructure & "Phygital" Delivery** DCCL employs a hybrid "Touch Banking" model, combining a physical branch network for trust-building with a fully digital backend for efficiency. * **Geographic Footprint:** Operates **35 branches** across **6 states**. While historically strong in the North and East, the company recently expanded into South India with its first branch in **Telangana (Miryalaguda)** in late 2025. * **Proprietary Technology Stack:** * **'Vijay' Software:** In-house LOS, LMS, and accounting system for Micro and MSME loans. * **RISEMONEY:** Cloud-based centralized management for the personal loan segment. * **Digital Efficiency:** Achieved **100% digital processing** for new originations, reducing turnaround times by **30%** and lowering the cost-to-serve by **18% YoY**. * **Human Capital:** Supported by a workforce of **260+ employees** (as of Dec 2025). --- ### **Financial Performance & Capital Structure** DCCL has demonstrated robust growth, with **9M FY26 PAT (₹7.04 Cr)** already matching the full-year **FY25 PAT**. **Key Financial Indicators (as of Q3 FY26 / Dec 2025):** | Metric | Value | | :--- | :--- | | **Capital Adequacy Ratio (CAR)** | **43.84%** (Regulatory req: 15%) | | **Gross NPA (GNPA)** | **1.54%** (Improved from 1.89% in FY25) | | **Net NPA (NNPA)** | **0.75%** | | **Average Yield** | **21.23%** | | **Net Worth** | **₹100.76 Crore** | | **Debt-Equity Ratio** | **1.58** | | **Return on Assets (ROA) Target** | **5.5% – 6.0%** (Up from 3.16% in FY25) | **Capital Market Activity:** * **Equity:** Successfully listed on the **NSE Emerge** platform in **May 2025**; the IPO was oversubscribed **106 times**, raising **₹25.66 Crore**. * **Debt:** Listed on both **NSE** and **BSE**. Raised **₹41 Crore** via NCDs in **Q4 FY26**. * **Credit Rating:** Maintained a **CARE BBB- (Stable)** rating. --- ### **Growth Strategy & Liability Management** The company is transitioning toward a higher-margin, lower-risk profile through aggressive liability management and partnership scaling. * **Business Correspondent (BC) Model:** DCCL acts as an agent for **SIDBI, ESAF Bank, and Kaleidofin Capital**. This "on-tap" liquidity model allows DCCL to earn margins without the loans residing on its own balance sheet. * **Liability Optimization:** In December 2025, DCCL utilized its strong liquidity to prematurely redeem **₹7.30 Crore** of high-cost **12.25% NCDs**. Management targets a further **1% to 1.5% reduction** in overall borrowing costs. * **Securitization of Assets:** Increasing focus on **Secured MSME Lending** (loans against property/vacant land) to further insulate the portfolio from market volatility. * **FY2027 Guidance:** Management has set an AUM growth target of **18-20%** and a PAT guidance of **₹18 - ₹20 Crore**. --- ### **Risk Management & Governance Framework** DCCL operates a multi-tiered risk mitigation strategy to manage the inherent challenges of lending to informal sectors. * **Credit & Asset Quality:** Mitigation includes the use of **Alternative Data**, **AI-powered fraud detection**, and **Fidelity Insurance** for collections. The Municipality product acts as a natural hedge due to its high recovery rates. * **Operational Controls:** Disbursements are made **100% directly to bank accounts** to eliminate leakage. The company maintains a dedicated **Disaster Recovery Site** and a robust **Business Continuity Plan (BCP)**. * **Concentration Risk:** While currently concentrated in Western and Eastern India, the strategic expansion into **South India** and the shift toward **Secured MSME/LAP** products are designed to diversify geographic and collateral risk. * **Regulatory Compliance:** Strict adherence to **KYC/AML** policies and centralized monitoring ensures alignment with evolving **RBI** guidelines on digital lending and data privacy.