Crisil downgrades SSFL due to rising NPAs, higher credit costs, and slower business revival impacting profitability.

• GNPAs surged to 5.6% (24.9% with write-offs) by March 2025, driven by overindebtedness and staff attrition.
• Q4 2025 loss widened to Rs 434 crore; credit costs hit 17% of assets, up from 2.1% in 2024.
• Rs 750 crore equity raise planned to offset losses; capital ratios remain strong at 36% Tier I CAR.