### **Company Overview** SBFC Finance Limited is a systemically important, non-deposit-taking Non-Banking Financial Company (NBFC-NDSI) registered with the Reserve Bank of India (RBI) under the Middle Layer regulatory framework. Headquartered in Mumbai, the company was established in 2008 with a mission to democratize financial access for micro, small, and medium enterprises (MSMEs) and underserved individuals across India. It is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), having completed its Initial Public Offering (IPO) in August 2023. SBFC follows a purpose-driven, “Deep Roots, Long Shoots” growth strategy—focusing on institutional strength built on people, processes, governance, and technology—enabling scalable, profitable, and responsible expansion. --- ### **Core Business Focus** SBFC primarily operates in the **secured MSME financing segment**, targeting self-employed entrepreneurs and small business owners requiring loans between **₹5 lakh and ₹30 lakh**. This segment: - Represents a **₹4 lakh crore addressable market** (as of March 2025), growing at a **24% CAGR** (FY18–FY25) per CRIF data. - Remains **underserved by traditional banks**, especially in Tier-II and Tier-III cities. - Aligns with national economic trends such as Udyam registration, GST formalization, and digital financial inclusion, which are driving credit demand. Additionally, SBFC offers **Gold Loans (LAG)**, contributing **17% of total AUM** (₹14,540 crore in FY2025), serving customers with limited documentation through quick disbursement (within 20 minutes) and low-cost access to liquidity. --- ### **Product Portfolio & Key Metrics (FY2025)** | **Metric** | **Value** | |-----------|---------| | **Total Assets Under Management (AUM)** | ₹87,474 Crore | | - **Secured MSME Loans (83%)** | ₹72,934 Crore | | - **Gold Loans (17%)** | ₹14,540 Crore | | **Average Loan Size** | | | - MSME Loans | ₹9.49 Lakh | | - Gold Loans | ₹0.94 Lakh | | **Live Customer Base** | ~171,000 (as of Jun 2025) | | **Number of Branches** | 215 | | **Cities Covered** | 170 | | **States & UTs Served** | 16 States, 2 Union Territories | | **Employee Strength** | 4,294 | | **Profit After Tax (First 9 Months FY25)** | ₹251 Crore | | **ROE Outlook (FY26 Q4)** | Target ~15% | | **Equity Tier 1 (CRAR)** | 45% (as of Nov 2023) | | **Gross NPA Ratio (FY24)** | 2.43% | | **Gold Loan GNPA (FY24)** | 0.48% | | **Provision Coverage Ratio** | 45.7% | --- ### **Strategic Pillars** SBFC’s business strategy rests on five core pillars: 1. **Secured Lending**: Nearly 100% of the loan book is collateral-backed. - **MSME**: Avg. Loan-to-Value (LTV) = 42.6% - **Gold Loan**: Avg. LTV = 62.4% 2. **Strong Credit Underwriting**: Uses decentralized, localized credit evaluation with market intelligence and asset-backed analysis. 3. **Institutional Discipline**: Professional governance, transparency, and ESG-aligned operations. 4. **Technology-Driven Model**: Fully digitized, scalable, and secure infrastructure. 5. **Responsible & Inclusive Lending**: Focus on women entrepreneurs, low-income households, and financial inclusion. --- ### **Phygital Business Model** SBFC employs a **high-touch, high-tech “Phygital” lending model** that combines: - **In-person engagement** via doorstep sales and branch-based relationship building. - **End-to-end digital processing** using proprietary platforms for loan origination, underwriting, disbursal, and collections. This hybrid model enables: - Fast disbursement: MSME loans in **7 working days**, Gold in **<20 minutes**. - Paperless onboarding using **Aadhaar eKYC, PAN validation, eSign, and iris-based KYC**. - Customer reach in underpenetrated markets where only **~25% of districts are currently served**. --- ### **Technology & Digital Transformation** SBFC has invested significantly in modernizing its tech stack: - **Loan Origination System (LOS)**: LeviOSa — integrated with CRM, HRMS, and BI systems. - **Loan Management System (LMS)**: Unified, three-tier, microservices-based platform with Oracle backend. - **Intermediate Banking System (IBS)**: API middleware for real-time integration with payment gateways, compliance systems, and partners. - **Disaster Recovery (DR)**: Mirrored data centers in Mumbai and Hyderabad; tested quarterly with zero RTO/RPO. - **Generative AI Pilot**: In collaboration with AWS for AI-assisted credit assessment (under evaluation). - **RPA Implementation**: Automates reconciliation, report generation, and compliance monitoring—reducing errors and improving throughput. - **Customer Apps**: Omega & Delta for **mobile-based digital collections** and monitoring. --- ### **Branch Network & Geographic Reach** As per latest data (Jul 2025): - Operates **215 branches** across **170 cities** in **16 states and 2 UTs**. - Focus on **Tier-II and Tier-III cities**, with strategic expansion in recent years into **Assam, West Bengal, and Bihar**. - No single state accounts for >17.5% of AUM—ensuring **low geographical concentration risk**. - AUM per branch is rising steadily—indicating **efficient productivity and scalability**. --- ### **Funding & Capital Strategy** - Successfully raised **₹4,000 crores (~$480M)** from **British International Investment (BII)** in FY2025. - ₹200 crores each for **women entrepreneurs** and **low-income borrowers**. - Supports ESG-aligned capital flows and social impact goals. - Following IPO, plans to grow via **debt leverage**, targeting **Debt-to-Equity ratio of 3–4x** (from 1.5x) to amplify ROE. - Maintains committed but undrawn credit lines for **liquidity resilience**. --- ### **Institutional Partnerships & Co-Lending** - Pioneers **Co-Origination Model (CLM1)** with **ICICI Bank**: - Tri-party agreement with **dual credit vetting**. - Built a **₹1,000 crore co-origination book**—believed to be the **only NBFC in India scaling CLM1 at this level**. - Onboarded **20 lending partners** and pursuing institutional collaboration to expand reach while managing risk. - Avoids unsecured MSME lending due to high competition and risk. --- ### **Risk Management & Governance** - **Credit Underwriting**: In-house, granular assessment leveraging real-time analytics and state-level decision-making. - **Collections Infrastructure**: Strong recovery mechanisms with centralized monitoring. - **Enterprise Risk Management (ERM)**: Formal framework ensuring financial stability and compliance. - **Borrower Profile**: >700 CIBIL score at origination; predominantly formalizing informal sector businesses. --- ### **ESG & Social Impact** - **SBFC Gurukul**: Skilling initiative for underprivileged youth; trained **616 individuals** (35% women) for roles in credit, sales, and valuation. - Community development: Built smart classrooms and sanitation facilities in Rajasthan and Gujarat—resulting in **290+ new student enrollments**. - Focus on ethical lending, transparency, and inclusive access—especially for **women and marginalized groups**. --- ### **Leadership & Governance** - **Mr. Sreenivas Mylavarapu** (Appointed Nov 2025): Brings **29+ years** of experience in retail, MSME, agriculture, and microfinance. Former GM & Business Head at Karnataka Bank Ltd. - **Mr. Koni Uttam Nayak**: 27 years in payments; key leader shaping digital and real-time transaction capabilities. - Backed by **reputable investors** and governed by strong corporate governance, compliance, and transparency standards.