SBFC Finance hits new high as CARE upgrades ratings on company’s banking facilities: SBFC Finance stock price

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2 minutes reading Last Update : Sep 23, 2024 | 11:11 AM ISTANBUL

Shares of SBFC Finance rose 14.8% intraday, touching an all-time high of Rs 101.15 per share on the BSE in Monday’s trade. Shares of the non-banking financial company rose after India’s leading credit rating provider CARE Ratings upgraded the ratings on SBFC’s bank facilities.

Around 10:01 am, SBFC Finance shares were up 12.37% at Rs 99 per share on the BSE. In comparison, the BSE Sensex was trading at 84,851.32, up 307.01 points around the same time.

CARE ratings has upgraded SBFC Finance’s Rs 2,100 crore long-term fund-based term loan rating to ‘AA-‘ from ‘A+’ with stable outlook earlier, according to the company’s stock exchange filing.

Similarly, the credit rating agency upgraded NBFC’s Rs 1,400 crore long-term fund-based term loan (unassigned bank lines) rating to ‘AA-‘ from ‘A+’ and stable outlook earlier and withdrew the outlook to stable.

An ‘AA-‘ rating from CARE Ratings indicates that an issuer has very low credit risk and a high level of confidence in meeting its financial obligations on time.

SBFC Finance Q1 results

In terms of financial performance, the NBFC reported a 68% increase in profit after tax (PAT) at Rs 79 crore in the quarter ended June 30, 2024, compared to Rs 47 crore in the same period a year ago.

SBFC’s operating income in the quarter under review increased by 29.7 per cent to Rs 297.8 crore as against Rs 229.6 crore in the same period a year ago.

SBFC Finance is a non-deposit taking NBFC and its core client base consists of entrepreneurs, small business owners, self-employed individuals and salaried and working class individuals.

The company offers its services in the form of secured SME loans and gold loans.

SBFC Finance tends to extend its services to entrepreneurs and small business owners who are underserved or unserved by traditional financial institutions like banks. The company takes into consideration various factors while offering financial assistance in the form of loans.

SBFC Finance also offers services to help entrepreneurs meet their financial needs and thrive.

While SBFC Finance shares gained 3.34 percent in the last one year, BSE Sensex gained 28 percent in the same period.

First Published: Sep 23, 2024 | 11:07 AM ISTANBUL