Five Star Business Finance
About Company

About Company:
Five Star Business Finance is a registered Non Banking Finance Company (NBFC) with the Reserve Bank of India (RBI).
Provider of business and housing loans intended to offer appropriate credit services to the hitherto unreached segment of the market. The company's loans include small housing loans towards the building or purchase of a new house and repairing or renovating existing house properties, small business loans to meet borrower requirements for commencing new businesses and property loans to meet any kind of consumption needs, enabling individuals and business owners to fulfill their financial requirements at affordable rates of borrowing.
Five Star Business Finance passionately believe in the fact that “un-banked” does not necessarily mean “un-bankable”. In a country as large and as diverse, it take efforts to access, understand and extend appropriate and responsible credit services to this segment. Over the last three decades, Five Star have been working as a specialized financial services company in addressing the needs of this segment, funding the people who were perceived to be unfundable. The businesses that they work with can be touched and felt in our everyday lives and are businesses that create real impact on the ground. Their customers include all the way from small shop owners, flower vendors, maids, masons to small and medium enterprises that form the backbone of India’s economy.


Service:
Small Business and Mortgage Loans:
Five Star provides Small business loans to meet borrower requirements for commencing new businesses, expansion of his/ her existing businesses and to settle any unorganized dues he/ she has taken to further their businesses. The loans are given based on the company’s evaluation of the borrower household cash flows coupled against the security of the borrower’s house collateral. The typical loan ticket ranges between Rs 1 lakh to Rs 10 lakhs for a tenure between 24 and 84 months. The repayments are to be made on a monthly equated basis.
Vision: Reaching the Unreached through suitable credit solutions
Mission: Provide appropriate credit solutions to the hitherto unreached segment of the market by developing a niche underwriting model, built towards evaluating the twin strengths of the borrowers’ intention to repay and ability to repay, with the ultimate objectives of increasing customer satisfaction and maximising stakeholder returns


Corporate information:

Board of Directors:
D Lakshmipathy
Vikram Vaidyanathan
A Ramanathan
Thirulokchand Vasan
R Anand
Ling Wei Ong
Bhama Krishnamurthy
Arjun Saigal
B Haribabu
G V Ravishankar
L R Raviprasad
Sanjeev Mehra

Board Observer: Niren Shah
Key Managerial Personnel:
K Rangarajan – CIO
G Srikanth – CFO
B Shalini – Company Secretary

Key business highlights and achievements of company during FY 2020:
• Disbursed an amount of about 2,400 Crores to about 79,000 borrowers, resulting in an increase in the borrower base from around 73,000 to more than 140,000
• Increase in Assets under Management (AUM) from INR 2,113 Cr to INR 3,892 Cr, registering a growth of over 84%
• Profit After Tax increased from about INR 157 Crores during the previous year to about INR 261 Cr INR during the year
• Gross NPA of 1.36%; while this is higher than what would have materialized in the absence of COVID-19, this is still one of the best asset qualities among companies operating in this borrower
segment
• Provided employment incrementally to almost 2,000 staff and closed with a staff headcount of about 4,000
• Incremental debt availment of INR 1,800 Cr during the year (as against INR 636 Cr in the previous year), despite the adverse sentiments that existed towards NBFCs during the year
• Additional equity capital of INR 315 Cr was infused by TPG Capital, reinforcing their confidence in the company


Investors:
Matrix Partners India
Morgan Stanley Private Equity Asia
Norwest Venture Partners
Sequoia Capital
TPG Capital

Lender Banks:
HDFC bank, Federal bank, RBL, Kotak Mahindra bank, DCB bank, Yes bank, SBI, Bandhan bank, AU Small Finance bank, Equitas SFB, South Indian bank, Bank of Baroda, etc


Lender NBFC, DFIs & AMCs:
Sundaram Finance, Tata Capital, Bajaj Finserv, Chola, MAS Financial Services, Au Financiers, Franklin Templeton, Northern ARC, etc

Presence in the states:
Tamilnadu, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Chattisgarh, Uttar Pradesh


Key Parameters:

Parameter
 FY2020
FY2019
Growth
Assets under Management (INR Cr)3,892.232,112.8184%
Amount disbursed (INR Cr) 2,408.671,481.4663%
Branches (#)252
173
46%
Number of accounts143,079
72,890
96%
Number of employees 3734
1971
89%
Total comprehensive income260.84
156.28
67%

Unlisted Shares Details

Name
Five Star Business Finance Limited
Face Value
10 Rs
ISIN
INE128S01013
PAN
AAACF0419M


Financial Performance

Figures in crores unless specifically mentioned

Particulars
2019
2020
Total Revenues from Operations
408
786
Other Income
0.018
0.63
Total Income
408.93
787.35
Total Expenses
190.48
438.05
Profit Before Tax
218.44
349.30
Profit After Tax
156.66
261.95
EPS -  Basic (INR)
68.92
103.24



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