AUM soaring at 44 per cent CAGR: Do you have this bank in your portfolio?
SBFC Finance Limited is a leading Indian NBFC with soaring AUM, offering secured loans with a robust risk management framework.
Established in 2008, SBFC Finance Limited, a Systemically Important NBFC (NBFC-ND-SI), caters to diverse financial needs. Specializing in Secured MSME Loans and Loans against Gold, it is a pivotal player in India's financial landscape.
Business Segments
SBFC Finance Limited has two main business segments:
Secured MSME Loans
This segment accounts for 79 percent of the company's AUM as of FY23. The average ticket size (ATS) of secured MSME loans was Rs 9.9 lakh.
Gold Loans
This segment accounts for 17.5 percent of the company's AUM as of FY23. The ATS of gold loans was Rs 0.90 lakh.
Key Highlights
Leading MSME Company:
SBFC has one of the highest assets under management (AUM) growth among MSME companies. Its AUM has grown at a CAGR of 44 percent from FY19 to FY23, with disbursements growing at a CAGR of 40 percent in this period.
Strong Geographical Presence:
SBFC has a presence in 120 cities across 16 Indian states and 2 union territories, with 152 branches.
Robust Asset Quality:
SBFC has a healthy asset quality with a gross NPA of 2.43 percent and a net NPA of 1.41 percent as of FY23.
Strong Financial Performance:
SBFC has a strong financial performance with a NIM of 9.32 percent and a PCR of 42.04 percent as of FY23.
Key Growth Drivers
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SBFC Finance Limited is well-positioned to benefit from the following key growth drivers:
Leveraging Volume for Profit: Focusing on volume-driven growth, this company targets the Rs 5 lakh - Rs 30 lakh loan segment, representing 35 percent of India's loan demand. Operating leverage is expected to boost future profitability.
Rising Demand for MSME Loans: The demand for MSME loans is expected to grow in the coming years as the Indian economy continues to grow.
Growing Gold Loan Market: The gold loan market is also expected to grow in the coming years as gold is a popular investment and loan security in India.
Strong Focus on Tier II and Tier III Cities: SBFC has a strong focus on tier II and tier III cities, which are underserved by banks and other NBFCs.
Robust Risk Management Framework: SBFC has a robust risk management framework in place, which helps to mitigate its risk exposure.
Disclaimer: The article is for informational purposes only and not investment advice.