Sachin Bansal-Led Navi Finserv Comforts Creditors On Enough Liquidity Buffers, After RBI Ban

A day after the Reserve Bank of India slapped lending restrictions on Navi Finserv, the non-banking finance company has comforted bondholders that it has enough liquidity buffers, a person aware of the development said. The company has enough buffers to repay bondholders for up to a year, it has told investors, according to the person who spoke on condition of anonymity.

The urgent meeting on Friday, which was led by Executive Director and CEO Sachin Bansal, included several banks and a select few brokerages, saying that the company maintains liquidity buffers worth Rs 1,500 crore and that debt servicing will not remain an issue.

This amount is invested in government securities, the repo market, callable fixed deposits, and others.

Later on Monday, Navi Finserv also met with retail investors to talk about bond repayments and assure them of the company's financial position, the person quoted above said.

Following the RBI restrictions, Navi Finserv has scrapped its fundraising plans of Rs 100 crore through a public issue of bonds, the person said. As of October, the company has on-balance sheet debt repayment worth Rs 469 crore and on-book collections from customers of Rs 850 crore.

As of September 30, the company had gross assets management worth Rs 8,218 crore under its personal loan book and Rs 787 crore under the home loan book, the company disclosed to its bondholders. Total borrowings added up to Rs 7,532 crore at the end of the second quarter.

Even if there are no disbursements till March 2026, the company has assured investors that it will still remain profitable on an earnings-before-tax basis owing to the collections of its existing outstanding loans and other income.

In a situation where the restrictions are not lifted for the next eight to 10 months, the company aims to provide cash and cash equivalents as collateral.

The company also reiterated that the RBI did not make a mention of evergreening of loans in its order.

On Thursday, the RBI barred four non-banking financial companies from sanctioning and disbursing loans from Oct. 21 as it found material supervisory concerns in relation to high lending rates.

Apart from Navi Finserv, the central bank barred Asirvad Micro Finance, Arohan Financial Services, and DMI Finance to 'cease and desist' sanction and disbursal of loans.