Established management in micro-finance segment
Assam based Nightingale Finvest Private Limited (NFPL) has been engaged in extending micro credit since 2012 to women borrowers engaged in income generating activities under Joint Liability Group (JLG) model. NFPL has geographical presence in the states of Assam, Arunachal Pradesh, Mizoram and Meghalaya with its network of 54 branches and an Asset under Management (AUM) of Rs. 184.38 Cr. as on March 31,2025 (Prov). The company initially started its micro lending activities in 2004 under an NGO Nightingale Charitable Society and later in 2011 acquired an existing NBFC Aninda Investments & Finance Private Limited and was re-named as Nightingale Finvest Private Limited. NFPL is promoted by Mr. Mantu Nath Sharma who has over a decade of experience in financial inclusion of the under-served section of society in Assam. Mr. Mantu Nath Sharma (Managing Director) is adequately supported by other members on the Board of Directors comprising Mr. Pratap Chakravarty (Whole time director), Mr. Rukuniddin Ahmed (Whole time director). Mr. Chakravarthy and Mr. Ahmed have been associated with NFPL since the activities were conducted in in NCS. Other members include Mrs. Olee Bora (Nominee Director – North Eastern Development Finance Corporation), Mr. Ajay Vyas (Independent Director) and Mr. Manish Agarwalla (Independent Director).
Acuité believes that NFPL will continue to benefit from its established presence and experienced promoters in the financial services industry .
Comfortable Asset quality; Adequate capitalisation levels:
NFPL primarily focuses on micro-credit to women borrowers engaged in income-generating activities under the Joint Liability Group (JLG) model. The company is able to maintain healthy asset quality on account of prudent underwriting policies adopted by the management. The healthy asset quality is marked by its on-time portfolio at 97.88 percent as on March 31, 2025 (Prov). This improvement is supported by healthy collections where collection efficiency for current month due stood at an average of 98.48 percent for March 31, 2025 (Prov). The company reported a GNPA of 0.58 percent as on March 31, 2025 (Prov) (0.60 percent as on March 31,2024 and 0.71 percent as on March 31,2023). The company’s CAR stood at 29.81 percent as on March 31, 2025 (Prov) (29.42 percent as on March 31,2024 and 31.74 percent as on March 31,2023) . The company’s Asset under Management (AUM) is Rs. 184.38 Cr. as on March 31, 2025 (Prov) (Rs 137.88 Cr. as on March 31,2024 and Rs 88.58 Cr. as on March 31,2023).
Acuité believes that going forward the ability of the company to maintain comfortable asset quality and adequate capitalization levels will be key rating sensitivity |
Moderate Profitability albeit improving:
The company’s PAT stood at Rs 2.55 Cr. as on March 31 2025 (Prov) as against Rs. 2.09 Cr. as on March 31,2024 . The company’s ROAA has improved to 2.53 percent as on March 31 2025 (Prov) as compared to 2.36 percent as on March 31, 2024. The company’s AUM stood at Rs 184.38 Cr. as on March 31 2025 (Prov) (Rs 137.88 Cr. and Rs 88.58 Cr. as on March 31,2023). The company’s on book portfolio increased to Rs 105.92 Cr. as on March 31 2025 (Prov) from Rs 72.85 Cr. as on March 31,2024. The company witnessed a marginal growth in its off book portfolio to Rs 78.46 Cr. as on March 31 2025 (Prov) as compared to Rs 65.03 Cr. as on March 31,2024.
Acuité believes that the growth in AUM on account of increasing disbursements will be crucial.
Modest scale of operations; Geographical concentration risk:
The Company has been in the lending space since 2011. The company’s AUM stood at Rs 184.38 Cr. as on March 31 2025 (Prov) (Rs 137.88 Cr. as on March 31, 2024 and Rs 88.58 Cr. as on March 31,2023).While NFPL is in the process of scaling up its operations by next year, going forward the ability of the company to access timely capital infusion and its resource raising ability will be a key factor in the scalability of a business. The company's performance is expected to remain exposed to competitive landscape in these areas and occurrence of events such as natural calamities may adversely impact the credit profile of the borrowers.
Acuité believes, going forward, the ability of the company to mobilize additional funding through debt /equity and its ability to deploy the funds profitably while maintaining its asset quality will be key rating sensitivity.
Susceptibility to risks inherent to microfinance segment:
NFPL primarily extends unsecured loans to economically challenged borrowers who have limited ability to absorb income shocks. Since financial assistance to economic challenged borrowers is a sensitive issue, from government stand point the regulatory dispensation in respect of the policies becomes relevant. Any changes in the regulatory environment impeding the ability of entities like NFPL to enforce collections, etc will have an impact on its operational performance. Besides the regulatory risks, the inherent nature of the business renders the portfolios vulnerable to event risks such as natural calamities in the area of operations.
Acuité believes that containing slippages while maintaining the growth in the loan portfolio will be crucial. |
