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
Acuite has upgraded its long term rating to 'ACUITE BB-' (read as ACUITE Double B Minus) from 'ACUITE B+' (read as ACUITE B Plus) on the Rs.15.00 Cr. bank facilities of YVU Financial Services Private Limited (YVUFS). The outlook is 'Stable'.
Reasons for Rating Upgrade
The rating upgrade and migration from "Issuer Non-Cooperating' factors the experienced management profile and improvement in earnings. The rating also considers improvement in operational performance during FY2026. The AUM stood at Rs 44.63 Cr. (on book of Rs 18.82 Cr. and off book of Rs 25.81 Cr.) as on March 31,2026 and Rs 52.02 Cr. (on book of Rs 20.51 Cr. and off-book of Rs 31.51 Cr.) as on March 31,2025. YVUFS's profitability has improved in FY26 to 0.74 Cr. from 0.30 Cr. in FY2025. The current month collection efficiency for March 2026 stood at an average of 97.29 percent. The rating is constrained by modest scale of operations with geographic concentration risk and decline in asset quality & financial performance.
About the company
Incorporated in 1993, Manipur based YVUFS, is a Non-Banking Finance Company Micro Financial Institution (NBFC-MFI) registered with RBI. The company is promoted by Mr. Tikendrajit Singh Akoijam, Mr. Bikendrajit Singh Akoijam, YVU Microfin and YVU Staff Mutual Benefit Trust, with an aim to extend income generating loans to women borrowers, through joint liability group (JLG) and Non JLG Individuals lending model. The operations of YVUFS are spread across seven districts of two states namely, Manipur and Assam through a network of 12 branches as on FY2026.
Unsupported Rating
Not Applicable
Analytical Approach
Acuité has considered the standalone business and financial risk profile of YVU Financial Services Private Limited to arrive at the rating.
Key Rating Drivers
Strength
Experienced management and track record of operations
YVUFS commenced its micro-finance operations in 1996, extending micro-credit to women borrowers engaged in income-generating activities under Joint Liability Group (JLG) model. YVUFS focuses on providing financial assistance by way of providing micro-credit loans. YVUFS is promoted by Mr. Tikendrajit Singh Akoijam, Mr. Bikendrajit Singh Akoijam, YVU Microfin and YVU Staff Mutual Benefit Trust. Mr Bikendrjit is the Managing director and have more than a decade of experience in microfinance sector. Mr. Tikendrajit, Chairman & Director has over five decades of experience in social work, microfinance activities, he is the founding member of Youth Volunteer’s Union – a NGO. YVU Microfin is a trust registered under Indian Trust Act 1882. The board comprises of other members who have vast experience in the BFSI segment. YVUFS has Assets under Management (AUM) of Rs 44.63 Cr. as on March 31, 2026 (Rs 52.02 Cr. as on March 31,2025) spread across 12 Branches, 7 districts in two states of Manipur and Assam.
Acuité believes, that YVUFS will continue to benefit from extensive experience of its promoters and management.
Weakness
Modest scale of operations
YVUFS has been in the micro-finance lending space since 1996. The company has modest scale of operations with an outstanding loan portfolio of Rs. Rs 44.63 Cr. as on March 31, 2026 (compared to Rs Rs 52.02 Cr. as on March 31,2025). GNPA improved to 2.66 percent as on March 31, 2026 against 3.17 percent as on March 31,2025. NNPA stood at 0.43 percent as on March 31, 2026 against 0.05 percent as on March 31,2025. The company reported a PAT of Rs 0.74 Cr. during FY2026 against Rs 0.30 Cr. during FY2025.
While YVUFS is in the process of scaling up its operations, going forward the ability of the company to infuse further capital and diversify lender base or resource mix will be a key factor in the scalability of the business.
Susceptibility to risks inherent to microfinance segment
YVUFS 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 to enforce collections, etc will have an impact on its operational performance. YUVFS portfolio is exposed to high geographical concentration risk, as 84.74 per cent of the total portfolio is concentrated in only state of Manipur. 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 additional slippages while maintaining the growth in the loan portfolio will be crucial
Rating Sensitivity
Potential triggers (individual or collective) for an upward rating action:
Improvement in collection efficiency and asset quality
Improvement in profitability reflected in RoAA above 6.00 percent
Potential triggers (individual or collective) for a downward rating action:
Decline in profitability parameters
Further deterioration in asset quality parameters: GNPA above 5.00 percent
Liquidity Position
Adequate
YVUFS's overall liquidity profile remains adequate as on March 31, 2026 with no cumulative negative mismatches in near to medium term. The company has maintained unencumbered cash and bank balances of Rs. 0.94 Cr. as on March 31, 2026. YVUFS's total borrowings stood at 11.11 Cr. on March 31, 2026.
Outlook:
Stable
Other Factors affecting Rating
None
Key Financials - Standalone / Originator
Particulars
Unit
FY26
(Provisional)
FY25
(Actual)
Total Assets
Rs Cr
25.74
27.09
Total Income*
Rs Cr
3.65
3.61
PAT
Rs Cr
0.74
0.30
Net worth
Rs Cr
9.76
9.02
Return on Average Assets (RoAA)
(%)
2.81
1.12
Return on Average Networth (RoNW)
(%)
7.90
3.33
Gearing (Debt/Equity)
Times
1.34
1.65
Gross NPA
(%)
2.66
3.17
Net NPA
(%)
0.43
0.05
*Total income equals to Net interest income plus other income
**Ratios are as per Acuite's calculation
Status of non-cooperation with previous CRA (if applicable):
ACUITE B+
(Downgraded & Issuer not co-operating* from ACUITE BB- | Stable)
Proposed Long Term Bank Facility
Long Term
12.67
ACUITE B+
(Downgraded & Issuer not co-operating* from ACUITE BB- | Stable)
22 Jan 2025
Proposed Long Term Bank Facility
Long Term
12.67
ACUITE BB- | Stable
(Upgraded from ACUITE C)
Term Loan
Long Term
2.33
ACUITE BB- | Stable
(Upgraded from ACUITE C)
25 Oct 2023
Proposed Long Term Bank Facility
Long Term
12.67
ACUITE C
(Downgraded from ACUITE BB | Stable)
Term Loan
Long Term
2.33
ACUITE C
(Downgraded from ACUITE BB | Stable)
Lender’s Name
ISIN
Facilities
Listing Status
Regulated By
Date Of Issuance
Coupon Rate
Maturity Date
Quantum (Rs. Cr.)
Complexity Level
Rating
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.
15.00
Simple
ACUITE BB- | Stable | Upgraded ( from ACUITE B+ )
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.
Contacts
List of instruments and names of regulators of the instruments
