Real Touch Finance Strengthens Capital and Cleans Books

Real Touch Finance's Board of Directors, in a meeting on March 20, 2026, approved a dual financial strategy: issuing ₹2.56 crore in unlisted, secured Non-Convertible Debentures (NCDs) and writing off ₹3.48 crore in outstanding receivables.

The newly approved NCDs will carry a fixed coupon rate of 9.50% annually and have a three-year tenure from their allotment date. This issuance is intended to boost the company's capital base, providing essential liquidity for its lending operations and helping it meet regulatory requirements as a Non-Banking Financial Company (NBFC).

In a separate decision, the company wrote off ₹3.48 crore in receivables that were deemed irrecoverable. This amount represents a significant portion, about 12.05%, of the company's total turnover of ₹28.89 crore from its last audited financial statements. While this write-off directly impacts current profitability, it serves to clean up the balance sheet by removing non-performing assets, thereby improving the overall quality of its remaining receivables.

Established in 1984, Real Touch Finance Limited operates as a registered NBFC, offering a range of financial products including personal, education, and business loans. Like many NBFCs, it relies heavily on debt financing; in FY25 alone, it secured ₹5,477.06 crore in long-term borrowings and ₹2,200.00 crore in debt securities. The company's capitalisation remains healthy, with a Capital Adequacy Ratio (CRAR) of 25.81% as of March 31, 2025, comfortably exceeding the regulatory minimum of 15%.

The company expects the financial impact of the write-off on its profitability and capital adequacy to be manageable. Real Touch Finance also indicated that it will continue efforts to recover the written-off amounts where feasible, suggesting a proactive approach to recouping losses.

In the competitive NBFC sector, where companies like Bajaj Finance, Jio Financial Services, Shriram Finance, and Muthoot Finance are prominent, the issuance of NCDs to fund growth is a common practice. Real Touch Finance's actions align with these industry norms.

Moving forward, investors will likely monitor the specifics of the ₹2.56 crore NCD allocation, the progress of the company's recovery initiatives for the written-off receivables, and the eventual impact on its quarterly financial results and capital management.