About Five-Star Business Finance Limited 

Five-Star Business Finance Limited is a non-deposit taking, systemically important NBFC incorporated in 1984 and registered with the Reserve Bank of India to carry on lending without accepting public deposits. It is classified as an NBFC–Investment and Credit Company in the RBI’s Middle Layer under the Scale Based Regulations. The company’s shares are listed on NSE and BSE since November 21, 2022, and its registered office is in Chennai. Five-Star primarily provides loans for business purposes, house renovation/extension and other mortgage needs.

The company offers secured “small business loans” to micro-entrepreneurs and self-employed individuals, a segment that typically lacks access to formal credit, especially in urban and semi-urban markets. Around 95% of the portfolio is backed by self-occupied residential property; loan sizes generally range from Rs 1 Lakh to Rs 10 Lakh, with most below Rs 5 Lakh. Tenures are typically 5–7 years, and underwriting norms include a 50% cap on both Loan-to-Value and Debt Burden Ratio at origination, supporting robust asset quality.

Five-Star operates through 748 branches across 10 states and 1 union territory: Tamil Nadu, Puducherry, Karnataka, Andhra Pradesh, Telangana, Maharashtra, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Rajasthan and Gujarat (first branch opened during the year). As on March 31, 2025, the company reported AUM of Rs 11,877.04 crore and a borrower base of more than 4.5 lakh customers. Number of subsidiaries: 0.

Five-Star Business Finance Key milestones:

• 1984: Incorporation; 
• 2004: exclusive focus on secured business loans; 
• 2014: first PE infusion; 
• 2015: CEO and CFO inducted; 
• 2022: listing on the bourses; 
• 2025: 748 branches; rating AA- (long-term)

Five-Star Business Finance Key Management  

• Lakshmipathy Deenadayalan, Chairman & Managing Director.
• Rangarajan Krishnan, Joint Managing Director & Chief Executive Officer.
• Srikanth Gopalakrishnan, Joint Managing Director & Chief Financial Officer.
• Vigneshkumar SM, Company Secretary.

Latest Updates on Five-Star Business Finance Limited 

• Network expansion: Branches increased to 748, with entry into Gujarat; 228 branches were opened, including 80 new and 148 created via a “split branch” strategy to enhance risk oversight. The company operates across 10 states and 1 union territory, with a borrower base of over 4.5 lakh as of March 31, 2025.
• Capital and governance: Capital Adequacy Ratio stood at 50.10% as of March 31, 2025. The Board and shareholders approved issuance of up to 4,10,000 convertible share warrants on a preferential basis; 25% upfront consideration was received and warrants were allotted on October 24, 2024, following in-principle approvals from NSE and BSE.
• Management change: Appointment of Rangarajan Krishnan as Joint Managing Director effective August 17, 2024, and re-designation as Joint Managing Director & CEO; shareholders approved the appointment at the AGM on September 13, 2024.
• Ratings: CARE A1+ (short-term) and AA- (long-term); ICRA AA- (long-term); India Ratings AA- (NCDs), reaffirmed for various facilities during the year.
• Operating highlights: Disbursals of Rs 4,969.66 crore; AUM of Rs 11,877.04 crore; average ticket size of Rs 3.58 Lakh in FY 2024–25.