Inability to control the level of non-performing assets in the future, or its impairment of financial instruments allowance is insufficient to cover future loan losses.
Any disruption in its funding sources.
Vulnerability to interest rate risk and an inability to manage the same.
Asset-liability mismatches that could expose it to interest rate and liquidity risks
Any failure in its IT systems.
Geographic concentration in low-income states like West Bengal, Bihar, Assam, and Odisha.
Inability to maintain its capital adequacy ratio.
Any downgrade in its credit ratings resulting in an increase in its finance costs.
Any changes in laws and regulations applicable to Non-Banking Finance Companies (NBFCs).
Highly competitive industry – the financing industry.
Operational risks including fraud, petty theft, embezzlement, or other misconduct since it deals with large volumes of cash.
Inability to measure or verify customer credit-worthiness or repayment ability data and information.
Exposure to credit, market, and liquidity risks including in respect of its residual MSME lending business.
Inability to develop or implement effective risk management frameworks.
Inability to protect or use its intellectual property rights.
Failure to detect money-laundering and other illegal or improper activities fully or on a timely basis.