Sachin Bansal is considering alternatives after the RBI rejected the bank’s application

Navi Technologies, which owns and operates Chaitanya India Fin Credit, said on Tuesday that it would engage with the RBI to understand the reasons for rejecting its application for an on-tap universal banking license. Sachin Bansal, the founder of Navi Technologies, told a news conference that the management of Fintech would also consider if an appeal route needs to be followed. According to the guidelines, companies can appeal against the decision of the central board within a month.

Chaitanya India is a microfinance subsidiary of Navi Technologies. Chaitanya India is a non-banking finance company (NBFC) that provides loans to low-income women in rural and semi-rural areas. As of December 2021, the company’s microfinance business assets under management stood at Rs 1,800 crore.

Meanwhile, Navi Finserv (NFS), a wholly owned subsidiary of Navi Technologies, has announced to raise up to Rs 600 crore through public issue of non-convertible debentures (NCDs) to expand its personal and home loan portfolio. The base size of the issue is Rs 300 crore and there is an option to hold an additional subscription of Rs 300 crore. The issue will open on May 23 and close on June 10 Secured NCDs will have two terms – 18 months and 27 months – and will carry a coupon rate between 9.20% and 9.75% per year.

Navi Finserv offers personal loans and home loans. The company is focusing on expanding its home loan portfolio, despite the large share of personal debt in the distribution of Navi Finserv. The IPO-bound Navi Technologies plans to raise funds from the public listing to Navi FinServe. Navi Technologies plans to raise Rs 3,350 crore through a new issue of shares. Of this, Rs 2,370 crore has to be deposited in the navel fineserve.

Navi Finserv has total debt of Rs 2,506 crore and total assets under Rs 1,648 crore. The company claims that it has a low non-performing asset ratio of 0.08% because it provides loans to borrowers with a high credit rating.

g The purpose of the forthcoming NCD issue is to raise funds for lending and financing purposes. This will further diversify our borrowing profile and add more retail investors to our portfolio to complement the broad base of our institutional partners, ”said Ankit Agarwal, Managing Director, NFS.