Veritas Finance Ltd

We have a diversified, granular and self- residential property backed secured portfolio with the fastest growth in terms of AUM among compared listed peers.

We have widespread, deep and largely in-house distribution network serving unserved and under-served borrowers in rural and semi-urban markets giving us the ability to launch multiple new businesses using existing distribution footprint.

We possess a robust risk management and credit assessment framework supported by on-ground collections infrastructure.

Ours is a technology-enabled scalable operating model resulting in short turnaround and improved controls on sourcing, disbursement and collections.

Its business involves exposure to high credit risk, first-time borrowers in under-served households and businesses in India (with such loans constituting 24.72% of its Loans (AUM) as of September 30, 2024). These borrowers may be adversely affected by economic and other factors that affect their income-earning capacity. Such factors could lead to increased customer defaults which could adversely affect its business, financial condition, results of operations and cash flows.

Non-payment or defaults by its borrowers may lead to increased levels of Gross Carrying Amount - Loans - Stage 3 (which aggregated to Rs. 1,267.61 million, Rs. 1,025.97 million, Rs. 772.92 million and Rs. 861.43 million as of September 30, 2024, March 31, 2024, March 31, 2023 and March 31, 2022, respectively) and related provisioning and write-offs on its balance sheet, which could adversely affect the company business, financial condition, results of operations and cash flows.

The company requires substantial funds for its business (its total borrowings as of September 30, 2024 were Rs. 48,894.18 million) and any disruption in its sources of funds could adversely affect its business, financial condition, results of operations and cash flows.

The company is affected by volatility in interest rates for both its lending and treasury operations, which could cause the company net interest income and net interest margin to vary and adversely affect its business, financial condition, results of operations and cash flows.