SBFC Finance Ltd IPO

The risk of non-payment or default by its borrowers may adversely affect the company business, results of operations and financial condition.

The company depends on the accuracy and completeness of information provided by its customers and certain third party service providers and its reliance on any erroneous or misleading information may affect its judgement of their creditworthiness, as well as the value of and title to the collateral.

The quality of the company portfolio may be impacted due to higher levels of NPAs and its business may be adversely affected if the company is unable to provide for such higher levels of NPAs.

The company inability to assess and recover the full value of collateral, or amounts outstanding under defaulted loans in a timely manner, or at all, could adversely affect the company business, results of operations and financial condition.

The company require substantial capital for its business and any disruption in the company sources of capital could have an adverse effect on its business, results of operations and financial condition.

The company business is particularly vulnerable to interest rate risk, and volatility in interest rates for both lending and treasury operations, could have an adverse effect on its net interest income and net interest margin, thereby affecting the company results of operations and cash flows.

COVID-19 has had and could continue to have certain adverse effects on its business, operations, cash flows and financial condition.

Any downgrade in the company credit ratings could increase its borrowing costs, affect the company ability to obtain financing, and adversely affect the company business, results of operations and financial condition.

The company is subject to laws and regulations governing the financial services industry and its operations in India, including laws in relation to capital adequacy ratios. Changes in, and differing interpretations of, laws and regulations governing it could adversely affect the company business, results of operations and prospects.

As an NBFC, the company is subject to periodic inspections by the RBI. Non-compliance with observations made by the RBI during these inspections could expose it to penalties and restrictions.