Running example 2 — Nirmal Finance Ltd (fictional NBFC)
Fictional company
Nirmal Finance Ltd (NFL) is invented for this course. Numbers come from
tools/running_example/generate.py (borrowings are the balancing item; the balance sheet balances every year).
Use these numbers in every lesson, exercise and mock that references NFL. ₹ crore unless stated.
1. Profile
| Item |
Detail |
| Business |
Nashik-based NBFC (NBFC–Investment & Credit Company, middle layer under RBI's scale-based regulation). Loans for used commercial vehicles (55%), tractors (20%), and secured MSME loans against property (25%) across Maharashtra, Gujarat, MP and Karnataka |
| Branches |
410 (FY26), mostly in tier-3/4 towns |
| Funding mix (FY26) |
Bank term loans 58%, NCDs 24%, securitisation/DA 11%, commercial paper 4%, sub-debt 3% |
| ALM |
Assets (loans) avg. tenor ~34 months; liabilities avg. tenor ~30 months — broadly matched; CP < 5% of borrowings |
| Promoter |
Founder family 38% + a PE fund 17% (entered FY19); QIP of ₹300 Cr in FY24 at ₹300/share (1.0 Cr new shares) |
| Share price |
₹385 at 31-Mar-2026; ₹402 on 18-Sep-2026 |
| Credit rating |
"AA– / Stable" |
2. Profit & loss (₹ Cr)
| ₹ Cr |
FY21 |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 |
| Interest income |
435.2 |
480.8 |
573.6 |
721.7 |
901.3 |
1,073.2 |
| Interest expense (finance costs) |
191.5 |
201.1 |
239.2 |
304.9 |
376.5 |
442.1 |
| Net interest income (NII) |
243.7 |
279.7 |
334.4 |
416.8 |
524.8 |
631.1 |
| Fee & other operating income |
15.3 |
19.9 |
24.0 |
34.0 |
41.9 |
50.8 |
| Net total income |
259.0 |
299.6 |
358.4 |
450.8 |
566.7 |
681.9 |
| Operating expenses (employee + other + depreciation) |
112.0 |
119.5 |
140.8 |
169.8 |
204.4 |
241.3 |
| Pre-provision operating profit (PPOP) |
147.0 |
180.1 |
217.6 |
281.0 |
362.3 |
440.6 |
| Impairment on financial instruments (credit cost) |
91.6 |
59.7 |
48.1 |
55.2 |
83.8 |
120.6 |
| Profit before tax |
55.4 |
120.4 |
169.5 |
225.8 |
278.5 |
320.0 |
| Tax |
13.9 |
30.3 |
42.7 |
56.8 |
70.1 |
80.5 |
| Profit after tax |
41.5 |
90.1 |
126.8 |
169.0 |
208.4 |
239.5 |
3. Balance sheet (as at 31-March, ₹ Cr)
Opening (31-Mar-2020): gross loans 2,480.0; ECL 103.0; liquid assets 270.0; borrowings 1,960.0; equity 620.0.
| ₹ Cr |
FY21 |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 |
| Gross loans (AUM, all on-book) |
2,610.0 |
3,080.0 |
3,790.0 |
4,700.0 |
5,780.0 |
6,920.0 |
| Less: ECL allowance (stage 1+2+3) |
82.2 |
87.7 |
94.6 |
108.2 |
134.9 |
170.9 |
| Net loans |
2,527.8 |
2,992.3 |
3,695.4 |
4,591.8 |
5,645.1 |
6,749.1 |
| Cash, bank & liquid investments |
310.0 |
290.0 |
360.0 |
420.0 |
480.0 |
560.0 |
| Other assets |
47.0 |
55.4 |
68.2 |
84.6 |
104.0 |
124.6 |
| Total assets |
2,884.8 |
3,337.7 |
4,123.6 |
5,096.4 |
6,229.1 |
7,433.7 |
| Borrowings (NCDs, bank loans, CPs, securitisation) |
2,158.1 |
2,519.1 |
3,175.4 |
3,676.5 |
4,598.8 |
5,565.4 |
| Other liabilities & provisions |
65.2 |
77.0 |
94.8 |
117.5 |
144.5 |
173.0 |
| Net worth (equity) |
661.5 |
741.6 |
853.4 |
1,302.4 |
1,485.8 |
1,695.3 |
| of which fresh equity raised in the year (QIP) |
0.0 |
0.0 |
0.0 |
300.0 |
0.0 |
0.0 |
| Dividends paid in the year |
0.0 |
10.0 |
15.0 |
20.0 |
25.0 |
30.0 |
4. Asset quality & capital (₹ Cr)
| ₹ Cr |
FY21 |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 |
| Disbursements |
1,540.0 |
1,980.0 |
2,460.0 |
2,950.0 |
3,480.0 |
3,990.0 |
| Gross stage-3 loans (GNPA) |
114.8 |
110.9 |
109.9 |
117.5 |
150.3 |
200.7 |
| Stage-3 ECL |
59.7 |
61.0 |
61.5 |
67.0 |
84.2 |
110.4 |
| Stage 1+2 ECL |
22.5 |
26.7 |
33.1 |
41.2 |
50.7 |
60.5 |
| Net stage-3 (NNPA) |
55.1 |
49.9 |
48.4 |
50.5 |
66.1 |
90.3 |
| Write-offs (derived) |
112.4 |
54.2 |
41.2 |
41.6 |
57.1 |
84.6 |
| Risk-weighted assets |
2,508.1 |
2,953.3 |
3,647.4 |
4,526.6 |
5,557.6 |
6,642.0 |
| Tier-2 capital (sub-debt) |
60.0 |
60.0 |
80.0 |
80.0 |
110.0 |
140.0 |
5. Key ratios
| Ratio |
FY21 |
FY22 |
FY23 |
FY24 |
FY25 |
FY26 |
| Yield on avg loans |
17.1% |
16.9% |
16.7% |
17.0% |
17.2% |
16.9% |
| Cost of funds (on avg borrowings) |
9.3% |
8.6% |
8.4% |
8.9% |
9.1% |
8.7% |
| NIM (NII / avg loans) |
9.6% |
9.8% |
9.7% |
9.8% |
10.0% |
9.9% |
| Cost-to-income (opex / net total income) |
43.2% |
39.9% |
39.3% |
37.7% |
36.1% |
35.4% |
| Credit cost (on avg loans) |
3.6% |
2.1% |
1.4% |
1.3% |
1.6% |
1.9% |
| GNPA % |
4.4% |
3.6% |
2.9% |
2.5% |
2.6% |
2.9% |
| NNPA % (on net loans) |
2.2% |
1.7% |
1.3% |
1.1% |
1.2% |
1.3% |
| Provision coverage (stage-3 ECL / GNPA) |
52.0% |
55.0% |
56.0% |
57.0% |
56.0% |
55.0% |
| RoA (PAT / avg total assets) |
1.5% |
2.9% |
3.4% |
3.7% |
3.7% |
3.5% |
| RoE (PAT / avg equity) |
6.5% |
12.8% |
15.9% |
15.7% |
14.9% |
15.1% |
| Leverage (total assets / equity) |
4.4x |
4.5x |
4.8x |
3.9x |
4.2x |
4.4x |
| CRAR |
28.8% |
27.1% |
25.6% |
30.5% |
28.7% |
27.6% |
| Tier-1 ratio |
26.4% |
25.1% |
23.4% |
28.8% |
26.7% |
25.5% |
| Shares outstanding (crore) |
10.0 |
10.0 |
10.0 |
11.0 |
11.0 |
11.0 |
| EPS, ₹ |
4.2 |
9.0 |
12.7 |
15.4 |
18.9 |
21.8 |
| Book value per share, ₹ |
66.2 |
74.2 |
85.3 |
118.4 |
135.1 |
154.1 |
| Share price at 31-March, ₹ |
140 |
190 |
215 |
330 |
420 |
385 |
| P/E |
33.7x |
21.1x |
17.0x |
21.5x |
22.2x |
17.7x |
| P/B |
2.1x |
2.6x |
2.5x |
2.8x |
3.1x |
2.5x |
Note: yields, cost of funds, NIM and credit cost are on average balances. RWA are simplified
(loans at 95% risk weight, liquid assets at 20%). FY21 credit cost reflects COVID-19 stress and the
RBI moratorium; FY25–26 show a mild uptick in stage-3 in the used-CV book.