Financial Performance Overview
SBFC Finance Limited reported strong financial results for FY26 with Profit After Tax (PAT) increasing 31% to ₹451 crore (₹4,508 million) from ₹345 crore in FY25. The company achieved significant growth in Assets Under Management (AUM), reaching ₹11,270 crore (₹112.7 billion), representing 29% year-over-year growth and crossing the ₹10,000 crore milestone. Total income stood at ₹16,795 million, with interest income contributing ₹15,542 million.
Operational Metrics and Asset Quality
The company maintained robust asset quality with Gross NPA at 2.61% (improved from 2.74% in FY25) and Net NPA at 1.54%. The provision coverage ratio was 41.64%, and Capital Adequacy Ratio (CRAR) remained strong at 32.84%, well above regulatory requirements. The loan portfolio comprised 75.2% Loan Against Property (₹75,142 million) and 24.5% Gold Loans (₹24,518 million), with only 0.2% unsecured exposure.
SBFC expanded its branch network to 251 branches across 18 states and 2 union territories, adding 46 branches during FY26. The company maintained 100% secured lending with 89.2% of the secured MSME portfolio having CIBIL scores above 700. The average ticket size was ₹9.93 lakh for MSME loans and ₹1.23 lakh for gold loans.
Funding and Liquidity Position
Total borrowings reached ₹71,617 crore, comprising Indian rupee bank loans (₹39,340 crore), foreign currency loans (₹20,353 crore), NCDs (₹8,000 crore), and other sources. The cost of borrowing reduced to 8.85% from 9.33% in FY25, while yield on loans improved to 17.84%, resulting in an enhanced spread of 8.99%.
The company maintained strong liquidity with Liquidity Coverage Ratio (LCR) averaging 145.36% for Q4 FY26, well above regulatory requirements. Investments included treasury bills (₹1,003 million), mutual fund units (₹90 million), and security receipts (₹832 million).
Leadership Transition and Corporate Governance
Effective April 1, 2026, SBFC completed a leadership transition with Mr. Aseem Dhru re-designated as Executive Vice Chairman (from Managing Director & CEO) and Mr. Mahesh Dayani assuming the role of Managing Director & CEO (from Executive Director). Both appointments were approved by shareholders for five-year terms until March 31, 2031.
The board comprised 9 directors, including 4 independent directors and 1 woman director. Six board meetings were held during FY26, with all statutory committees meeting regularly. The company maintained AA- (Stable) credit ratings from ICRA, India Ratings, and CARE Ratings.
Risk Management and Fraud Incidents
SBFC reported three fraud cases during FY26 totaling ₹67.63 million, involving customer fraud, employee collusion, and collateral misuse. The cases included property document re-pledging, forged reports at the Jhunjhunu branch, and stolen gold re-pledging. Recovery of ₹1.76 million was achieved, and preventive measures including employee termination, police complaints, and enhanced controls were implemented.
ESG Initiatives and CSR Spending
The company demonstrated commitment to ESG through digitalization reducing paper waste, e-waste management policy, and plastic waste reduction. CSR spending of ₹7.14 crore (exceeding the mandatory ₹6.78 crore obligation) supported education infrastructure (₹2.10 crore), skill development (₹3.26 crore), healthcare (₹1.04 crore), and environmental initiatives (₹0.39 crore).
Energy consumption was 15,277.19 GJ with improved energy intensity of 4.63 GJ per employee. Scope 2 emissions were 3,013 tCO2e, and water consumption was 2,664 kiloliters.
Subsidiary Update and AGM Matters
SBFC Home Finance Private Limited, a former subsidiary, completed voluntary liquidation after RBI denied its housing finance registration application. The net proceeds were distributed to SBFC Finance in March 2025.
The 19th Annual General Meeting is scheduled for July 14, 2026, featuring special resolutions to increase borrowing limits to ₹16,000 crore and create charges up to ₹19,000 crore to support business expansion. The meeting will also address the re-appointment of key directors and issuance of NCDs up to ₹4,000 crore.
Auditor Report and Regulatory Compliance
Auditor M M Nissim & Co LLP issued an unmodified opinion, highlighting ECL modeling for loan impairment (₹1,839 million provision) as a key audit matter. The company maintained compliance with all RBI regulations as a Non-Deposit taking NBFC classified under the "Middle Layer" per Scale Based Regulation, with no regulatory penalties imposed during the year.