Risks
Credit Risk: Defaults or non-performing assets (NPAs) from its loan portfolio, which directly impacts profitability and capital.
Interest Rate Risk: Mismatches between borrowing costs and lending rates, affecting net interest margins.
Liquidity Risk: Inability to raise sufficient funds to meet financial obligations, especially in tight credit markets.
Regulatory Risk: Stricter capital adequacy norms, asset classification rules, or other regulatory changes by the RBI could impact operations and profitability.
Intense Competition: Pressure from banks, other NBFCs, and emerging fintech players on pricing and market share.
Economic Downturns: A slowdown in economic activity can lead to higher defaults and reduced credit demand.