1. Opening Hook
When most NBFCs were busy blaming RBI’s “tough love” for their credit hangovers, SBFC decided to party sober. The company crossed ₹10,000 crore in AUM, cheered like India won the World Cup, and then — in classic banker humor — reminded everyone, “We can celebrate only when the money comes back.”
CEO Aseem Dhru went full philosopher-banker mode, comparing long-term business planning to predicting your weekend plans — one’s vivid, the other pure hope. Yet, in this chaos, SBFC claims it’s figured out the formula for balance — growth without the hangover.
Keep reading — because this call had everything: philosophical TED talk energy, risk management zen, and an AUM milestone that deserved fireworks (or at least a better cake knife).
2. At a Glance
- AUM up 29% YoY:Lending binge, but responsibly — like green tea instead of whiskey.
- PAT ₹109 crore (+30% YoY, +8% QoQ):Profits finally growing faster than Excel macros.
- ROE 14.1%:The “Edison bulb” moment — Dhru’s words, not ours.
- ROA 4.56%:Running lean and mean, without steroids.
- GNPA 2.77%:The Karnataka hiccup that won’t leave quietly.
- PCR 46%:Risk coverage like a paranoid insurance salesman.
- Cost of borrowings 8.96%:Down 36 bps — cheaper money, happier CFO.
- Yield 18%:Because risk deserves a premium, not pity.
3. Management’s Key Commentary
Aseem Dhru:“We’re building for decades but accounting for quarters.”(Translation: Don’t ask me about the next 90 days — I’m busy becoming immortal.)😏
“The MSME loan market doubles every four years; we’re riding that tiger.”(Translation: TAM slides finally have meaning — not just PowerPoint filler.)
“Low inflation volatility is music to a banker’s ear.”(Translation: We can sleep without RBI-induced heartburn.)
“Crossing ₹10,000 crore AUM felt like a World Cup win.”(Translation: There was cake. Also mild anxiety about repayments.)🎂
“Credit costs up to 1.29%, but fairly priced.”(Translation: We’re not saints, just cautious lenders with calculators.)
“We tightened credit screens — no loans below ₹7 lakh, CIBIL ≥700.”(Translation: Sorry, low-score borrowers — we’ve seen your kind.)
“Our 14% ROE feels like Edison’s first bulb lighting up.”(Translation: Finally, after years of darkness, the damn thing works.)💡
4. Numbers Decoded
| Metric | Q2 FY26 | Change (YoY/QoQ) | Commentary |
|---|---|---|---|
| AUM | ₹9,938 crore | +29% / +6% | Crossed ₹10k crore post-quarter; fireworks time. |
| MSME share of AUM | 82% | — | Core bread and butter. |
| Yield | 18.01% | +32 bps YoY | Risk well-priced, not reckless. |
| Cost of Borrowing | 8.96% | -36 bps | RBI transmission: slow but sweet. |
| Spread | 9.05% | +68 bps YoY | CFO’s new favorite number. |
| GNPA | 2.77% | Flat | Karnataka rains on parade. |
| PCR | 46.17% | Above 40% target | Safety blanket intact. |
| ROA / ROE | 4.56% / 14.09% | +70bps / +56bps | The “Edison” upgrade. |
| Capital Adequacy | 34.05% | — | Still very capital-rich. |
Bottomline:A lender that finally learned to make profitsandsense at the same time.
5. Analyst Questions
Q:Outlook ahead?Aseem:“No change. 5–7% QoQ AUM growth, credit cost may inch up 10–15 bps.”(Translation: We’re steady, not psychic.)
Q:Why shift to higher ticket loans?Mahesh:“Sub-₹7L loans too risky; average ticket now ₹10.2L.”(Translation: We prefer clients who pay on time — radical, we know.)
Q:Stress geography?Mahesh:“Mostly Karnataka.”(Translation: Blame politics, not portfolio.)
Q:Why the CEO’s stake sale?Aseem:“Personal liquidity.”(Translation: Even CEOs need to buy things occasionally.)
Q:Leverage target?CFO:“Debt-to-equity sub-2x now; may go to 3x before raising equity.”(Translation: Still plenty of headroom
