Press Release

Press Release

August 13, 2026

B B BANTHIA FINANCE PRIVATE LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	25.00	ACUITE BBB- \| Stable \| Reaffirmed	-	RBI
Non Convertible Debentures (NCD)	0.00	30.00	ACUITE BBB- \| Stable \| Assigned	-	MCA
Total Outstanding	0.00	55.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuité has assigned the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 30.00 crore NCD (Non Convertible Debentures) of B B Banthia Finance Private Limited. The outlook is 'Stable'.

Acuité has reaffirmed the long-term rating of ‘ACUITE BBB-’ (read as ACUITE triple B minus) on the Rs. 25.00 crore bank facilities of B B Banthia Finance Private Limited. The outlook is 'Stable'.

Rationale for rating

The rating factors in the experienced promoters, moderate asset quality and comfortable capitalization levels. BBBFL reported a CRAR of 28.15 percent and gearing level stood at 2.82 times as on Prov.FY26. The rating takes into consideration in the company’s lending profile towards liquid gold loans & improvement in disbursal levels. The rating further draws comfort from moderate asset quality metrics marked by on time portfolio at 96.10 percent and Gross Non-Performing Assets (GNPA) at 0.43% as on Prov.FY26. Profitability has also improved in FY26 as PAT is Rs.5.29 Cr. as compared with FY25 it was Rs.4.25 Cr. The rating is, however, constrained by the company's geographical concentration, modest scale of operations, and highly competitive business of gold loans. Going forward, the company’s ability to raise capital and profitably scale-up its loan portfolio while maintaining the asset quality will be a key monitorable.

About the company

Incorporated in 1997, B B Banthia Finance Private Limited is registered in Mumbai, Maharashtra. The company is a rural financing company that caters to the financial needs of the rural sector. This is done by providing “loan against gold” to serve this sector from three locations at Panvel, Mohopada and Karjat. The directors include Mr. Rajesh Birdichand Banthia, Mr. Gaurav Shailesh Banthia, Mr. Suyog Rajesh Banthia.

Unsupported Rating

Not Applicable.

Analytical Approach

Acuité has considered the standalone financial and business risk profile of B B Banthia Finance Private Limited to arrive at the rating.

Key Rating Drivers

Strength

Experienced promoters
The promoters have more than two decades of experience and a strong understanding of customer profile in the region they operate. Given the company’s long track record of presence of more than four decades in the state of Maharashtra, the company has built up good credibility among the borrowers. The company is promoted by Mr. Rajesh B. Banthia and his family members. He holds ~37.30 percent of shares individually of BBBFL as on March 31, 2026, while rest of the shareholding is held by other family members. The day-to-day operation of BBBFL is led by Mr. Rajesh B. Banthia who is supported by his team of professionals. Acuité believes that BBBFL will continue to benefit from its established presence of the B B Banthia Group and experience of the promoters in the gold loan segment.

Reasonable Asset Quality
Asset quality has shown improvement, marked by on-time portfolio at 96.10 percent as on Prov.FY26. BBBFL reported a Gross NPA of 0.43% and Net NPA of 0.22% as on Prov.FY26. The improvement was led by the management’s focus on collection toward delinquent assets. Going forward, the company’s ability to maintain asset quality will be a key monitorable and risk arising from adverse gold prices would be critical

Weakness

Moderate scale of Operations with high geographical concentration.
The company commenced its operation in 1997 and currently has a loan portfolio of Rs. 137.01 Cr. as on Prov.FY26 as against Rs.101.08 Cr. as on March 31, 2025. BBBFL is a mid-sized but a stable growing player in gold loans. The company's portfolio is currently concentrated in 1 district in Maharashtra and has a branch base of 12 branches as on March 31, 2026. Going forward, BBBFL plans to expand its network of branches in the coming FY. The company's performance is expected to remain exposed to the competitive landscape in these regions and the occurrence of events such as natural calamities, may adversely impact the credit profile of the borrowers. Moreover, BBBFL does plan to penetrate this segment by opening more branches in the coming year which would help build its foundation in these communities. Acuité believes that geographical concentration will continue to weigh on the company’s credit profile, however the development in how this specific niche of operating in rural areas is developed would be key a monitorable.

Limited financial flexibility
The capital structure of BBBFL is supported by a net worth of Rs.38.74Cr, Total Debt of Rs.109.15 Cr. and resultant gearing of 2.82 times as on Prov.FY26. BBBFL has a modest resource profile with a relationship with only two banks. The other funding source includes privately placed debentures, placed with close friends and relatives, and remains largely dependent on promoters for funding requirements. Acuite believes that the ability of the company to mobilise additional funding through debt/equity will be critical

Rating Sensitivity

Potential triggers (individual or collective) for an upward rating action:

Sustained improvement in the scale of operations while maintaining healthy asset quality metrics.
Consistent improvement in profitability.

Potential triggers (individual or collective) for a downward rating action:

Significant deterioration in asset quality.
Decline in profitability parameters making RoAA below 1.00 percent.

All Covenants

1. The capital adequacy ratio (as defined in extant NBFC regulations as set by RBI) shall be above 20%. FLDG given by the Company under contract (if any) shall be deducted from the capital for CRAR calculations.

2. Total Debt to Adjusted Tangible Net worth shall not exceed 5 (five point zero) times. (Unsecured loan availed will be considered as Debt only)

3. Maximum permissible ratio of sum of PAR>90 and write-off (net of recovery) (on the Company’s entire portfolio including receivables sold or discounted on non-recourse basis) to Gross Loan Portfolio shall be 3.50%. Write-offs will be considered for trailing 12 months.

4. NNPA shall not exceed 2%

5. Minimum permissible ratio of Adjusted Tangible Net Worth to GLP of the Company shall be 20%. (Twenty Percent).

6. Cumulative mismatches in Asset and Liability Mismatch (ALM) should be positive for all buckets. Undrawn sanction will be excluded for the purpose of the calculation.

7. Ensure that the profit after tax (as determined in accordance with Applicable Accounting Standards) is not negative for any financial quarter.

8. The Company will maintain minimum liquidity (unencumbered cash and cash equivalent including undrawn sanctions) to the tune of two months of operational expenses and Debt obligation/repayment at any point of time
9. Unsecured loan to the tune of INR 50 Cr will not be repaid till the tenure of this facility

‘Portfolio at Risk greater than 90 days or PAR > 90’ shall mean, in respect of the Company’s Gross Loan Portfolio, at any time, the outstanding principal amounts of the Client Loans that have one or more instalments of principal, interest, penalty, fee or any other payments overdue for 90 (ninety) days or more and includes restructured loans.

Tangible Net Worth means, with respect to any person, the amount paid up on such person's issued equity share capital, compulsorily convertible instruments and any amount standing to the credit of its reserves, less equity or equity-like investments (Except for listed/quoted securities), goodwill, deferred tax assets and other intangible assets.

Adjusted Tangible Net Worth means, with respect to any person, the amount paid up on such person's issued equity share capital, compulsorily convertible instruments and any amount standing to the credit of its reserves, less equity or equity-like investments of the Networth (Except for listed/quoted securities), goodwill, deferred tax assets, other intangible assets and loans/advances given to related parties.

Gross Loan Portfolio means and includes the outstanding principal amounts of the loans originated by the Company on its own books, securitized portfolio as well as loans originated on behalf of other entities by entering into partnership agreements but not included on the Company's own book.

All covenants would be tested on a quarterly basis for the Company i.e., as on 31st March, 30th June, 30th September and 31st December every year starting from 30th September 2026 on a standalone balance sheet till the final repayment.

The covenants shall be certified by the Company within 90 (ninety) calendar days from the end of each financial year and within 60 days from the end of each quarter except for the quarter ending March 31.

The Debenture Trustee may approve any application for consent in respect of the below matters, if Debenture Holders' representing more than 50% (fifty percent) of the outstanding principal amounts of the Debentures provide their consent, within a period of 3 business days from the date of receipt of such request/notification from the Debenture Trustee.

Liquidity Position

Adequate

The liquidity profile of B B Banthia remains adequate, supported by positive cumulative ALM mismatches across all maturity buckets. MFCL repayment obligations (total outflows) stood at Rs.55.44 Cr. over a one-year period, against receivable (total inflows) of Rs.159.81Cr. over the same period resulting in positive mismatch of Rs.104.37 Cr. as per the ALM statement dated March 31, 2026 (Prov.). The company also maintained cash and bank balances of around Rs.9.12 Cr. as on March 31, 2026 (Prov.).

Outlook - Stable

Other Factors affecting Rating

None.

Key Financials - Standalone / Originator

Particulars	Unit	FY26 (Prov.)	FY25 (Actual)
Total Assets	Rs. Cr.	152.10	105.20
Total Income*	Rs. Cr.	13.26	10.00
PAT	Rs. Cr.	5.29	4.25
Net Worth	Rs. Cr.	38.74	23.47
Return on Average Assets (RoAA)	(%)	4.11	4.36
Return on Average Net Worth (RoNW)	(%)	16.99	19.93
Debt/Equity	Times	2.82	3.33
Gross NPA	(%)	0.43	1.14
Net NPA	(%)	0.22	0.90

*Total income equals Net Interest Income plus other income

Status of non-cooperation with previous CRA (if applicable):

Not Applicable

Any other information

None.

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
26 Nov 2025	Cash Credit	Long Term	12.00	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	3.52	ACUITE BBB- \| Stable (Assigned)
	Term Loan	Long Term	0.52	ACUITE BBB- \| Stable (Assigned)
	Proposed Long Term Bank Facility	Long Term	8.96	ACUITE BBB- \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
State Bank of India	Not avl. / Not appl.	Cash Credit	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	12.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Not Applicable	INE2XNN07011	Non-Convertible Debentures (NCD)	Unlisted	MCA	09 Jul 2026	12.60	12 Jul 2027	7.50	Simple	ACUITE BBB- \| Stable \| Assigned
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	2.47	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Non Convertible Debentures	Unlisted	MCA	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	22.50	Simple	ACUITE BBB- \| Stable \| Assigned
Paul Merchants Finance Private Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	06 Mar 2026	Not avl. / Not appl.	10 Mar 2027	3.79	Simple	ACUITE BBB- \| Stable \| Reaffirmed
Suryoday Small Finance Bank Limited	Not avl. / Not appl.	Term Loan	Unlisted	RBI	29 Apr 2026	Not avl. / Not appl.	05 May 2027	4.61	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	23 May 2022	Not avl. / Not appl.	23 Apr 2028	2.00	Simple	ACUITE BBB- \| Stable \| Reaffirmed
State Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	23 Dec 2023	Not avl. / Not appl.	23 Nov 2026	0.13	Simple	ACUITE BBB- \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Tejas Chaugule
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks	7
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs)	7
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.