[ICRA]A-/Stable1.05x security coverAUM 759 Cr36.1% CRAR
A-/ StableMar 2026Rating rationale summary
ICRA A-/Stable factors in SCNL parentage, adequate capitalisation and AUM growth, offset by moderate scale, asset quality and subdued earnings.
Summary points
- SCNL parentage supports profile.
- Adequate capitalisation at 36.1% CRAR.
- AUM grew to Rs. 759 Cr in Dec-25.
- Asset quality and earnings remain monitorable.
Rating history timeline
Aug 2024Long-term ratings remained A-/Stable.
Sep 2025NCD programme carried A-/Stable rating.
Mar 2026ICRA assigned and reaffirmed A-/Stable.
Outlook implications
Stable outlook assumes SFL sustains adequate capitalisation while expanding AUM and improving profitability, with continued parent support from SCNL.
Implications for investors
- A-/Stable supports a moderate credit-risk view for timely servicing, backed by parent support and adequate capitalisation.
- 1.05x receivables security adds structural protection, subject to eligible asset maintenance and enforcement.
- Investors should track GNPA, credit costs, funding diversity and SCNL support.
Watch for: GNPA, credit costs, RoMA, parent support, funding diversity and SEB/wholesale book seasoning.Rating Drivers
SCNL support
36.1% CRAR
Moderate AUM scale
GNPA at 4.7%
Subdued RoMA
How this issuer compares to peers
Benchmark yield, balance-sheet strength, and risk indicators against similar issuers to make the credit case easier to validate.