Credit Rating

23rd September, 2026 To, To, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (East), 21st Floor, Dalal Street, Mumbai – 400051. Mumbai – 400001. NSE Symbol: SBFC BSE Equity Scrip Code: 543959 Dear Sir/Madam, Sub: Disclosure of Credit Rating under Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Pursuant to the aforementioned regulations, please find below the details of the credit rating(s) provided by India Ratings & Research Private Limited for pass-through certificates (PTCs) issued by Prime Trust SBL Aug 22 [SPV under ABS transaction] originated by SBFC Finance Limited backed by a pool of asset-backed securities: Name of the trust Name of the Credit Instrument Credit Rating Rating Action Rating Agency Prime Trust SBL Aug 22 India Ratings & Series A1 IND AA(SO)/ Affirmed [SPV under ABS Research Private securitised Stable transaction] originated Limited notes by SBFC Finance Limited backed by a pool of asset backed securities The rating letter provided by India Ratings & Research Private Limited was received by the Company on 22nd September, 2026 at 8.31 PM (IST) which has been enclosed herewith. This information is also being uploaded on the website of the Company at: https://www.sbfc.com/investors You are requested to take the same on record. Yours faithfully, For SBFC Finance Limited Sanket Agrawal Chief Financial Officer Encl: a/a SBFC Finance Limited Registered Office: Unit No. 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East) Mumbai - 400 059 T. : +91-22-67875300 • F : +91-22-67875344 • www.SBFC.com • Email: complianceofficer@sbfc.com CIN No : L67190MH2008PLC178270 India Ratings Affirms Prime Trust SBL Aug 22 (Originated by SBFC Finance Limited) Sep 22, 2026 | Prime Trust SBL Aug 22 | Securitisation India Ratings and Research (Ind-Ra) has affirmed Prime Trust SBL Aug 22’s (an asset-backed securitisation transaction) securitised notes (SNs) as follows: Details of Instruments Size of Instrument Regulator of Date of Coupon Maturity Rating Assigned along Rating Issue (INR Description Instrument Issuance Rate (%) Date with Watch/Outlook Action million) Series A1 RBI 29 August 8.45 20 376.25 IND AA(SO)/Stable Affirmed securitised 2022 September notes 2032 *The securitised notes (SNs) carry a floating rate coupon linked to benchmark of three-month ICICI MCLR rate + yield spread. The yield spread for Series A1 SNs is 35bp. Coupon Rate – per annum, payable monthly Analytical Approach As part of its analysis, the agency considers historical data of the originator’s portfolio to determine the base values of key variables that would influence the level of expected losses in this transaction. Ind-Ra also studies the performance of market peers operating in similar segments. The base values of the default rate, recovery rate, time to recovery, collection efficiency, prepayment rate and pool yield are stressed to assess whether the level of credit enhancement (CE) is sufficient for the current rating levels. Ind-Ra also stresses the above variables for the rating level as per its Asset-Backed Securitisations Rating Criteria. Based on the rating level, the agency also makes an adjustment for the borrowers carrying the highest interest rate loans, assuming they will either prepay or default. Based on the above assumptions, Ind-Ra builds a pool cash flow model also considering the transaction structure. Detailed Rationale of the Rating Action The micro and small enterprise-loan against property pool assigned to the trust has been originated by SBFC Finance Limited (SBFC; debt rated at ‘IND AA-‘/Stable; originator or seller and servicer). The ratings factor in the originator’s servicing and collection capabilities, the transaction structure, and the availability of CE. Quality of Asset Pool and Strength of Cash Flows: As per the details provided by the originator to Ind-Ra, the collateral pool assigned to the trust at par had an aggregate principal outstanding (POS) balance of INR495.32million, including principal overdue as on the payout date of 20 August 2026. As on the given payout date, the 998-loan pool had a weighted average (WA) seasoning of 59.85 months. The pool is amortised by 67.82%, implying a reasonable repayment track record of the underlying borrowers. The pool had an average outstanding loan balance of INR496,309 and a WA internal rate of return of 18.03%. The agency saw a cumulative prepayment of 42.47%. The loans delinquent by over 90+ days past due (dpd) were 2.57% of the original POS as of the collection month of July 2026. Cumulative collection efficiency was 97.9%. Payment Structure: The rating for Series A1 SNs addresses the timely payment of the interest and the principal to the SN investors on the scheduled payout dates, in accordance with the transaction documentation. List of Key Rating Drivers Strengths Track record, underwriting and collection capabilities of originator and quality and experience of servicer Adequacy of CEs Provision for appointment of back-up servicer Repayment track record of borrowers in pool Weaknesses Geographical concentration in pool Detailed Description of Key Rating Drivers Track Record, Underwriting and Collection Capabilities of Originator and Quality and Experience of Servicer: The agency is of the opinion that the issuer’s origination and servicing capabilities are of acceptable standards. The loan origination process is carried out by the sales manager, who is responsible for telecalling, pool calling, conducting workshops, generating leads through analytical data, and pamphlet distribution. The origination practices include a personal discussion with the borrower, document verification, collateral characteristics, field visit, and income assessment. There is a collections team that is responsible for efficiently collecting the dues from the borrowers. Telecalling is used in the starting stages of delinquency, followed by a field visit. Adequacy of CE: The transaction benefits from the available internal and external CE. The internal CE arises in the form of excess interest spread of 36.99% of the current POS for the SNs. Also, there was an internal CE in form of the subordination in form of an unrated equity tranche of 21.76% of the current POS as of the August 2026 payout, enhanced from 7.00% of the original POS. The total available external CE in the transaction was 15.55% of the current POS as of the August 2026 payout, enhanced from 5% initially. The CE is provided in the form of a fixed deposit in the name of originator, with a lien marked to the trustee with ICICI Bank Limited. Provision for Appointment of Back-up Servicer: In the event of servicer’s event of default or other events as defined in the documents, the trustee, on behalf of majority investors, shall be entitled to terminate the services of the Servicer and appoint alternative/successor servicer in the manner as specified under transaction documents. Repayment Track Record of Borrowers in Pool: The pool has a WA seasoning of 59.85 months, implying reasonable track records of repayment of the borrowers in the pool. Geographical Concentration in Pool: The top three states (Karnataka, Telangana and Madhya Pradesh) contribute around 61.44% to the total pool as of July 2026 collection month. Furthermore, the asset quality in this segment is more vulnerable to economic downturns compared to the secured asset class. Key Assumptions: Ind-Ra has derived a base case gross default rate of 7%-8% for the life of the transaction. The agency has analysed the characteristics of the pool and established its base case assumptions through the four key performance variables that collectively affect the credit risk in a transaction - default rate, recovery rate, recovery timeline and prepayment rate. Ind-Ra considers both the long-term historical averag [Showing first 8,000 characters — download PDF for full document]