Banking license rejection not the end of the road: Sachin Bansal

In response to the Reserve Bank of India’s (RBI) rejection of Chaitanya India Fin Credit’s application for a banking license, its CEO Sachin Bansal said it was not the last resort for the company’s plans and had several other options.

“We have not yet received a written response. We’ll determine the next course of action after we see it. This is not the end of the road for us and many options lie ahead,” said Mr. Bansal.

He was answering questions during a virtual media conference held on Tuesday to announce Navi Finserv’s (NFS) 600 crore non-convertible debt securities (NCDs) issuance, which will have a base issuance of 300 crore and an option to maintain a super- Subscription from an additional ₹300 crore.

“We respect RBI’s decision and will continue to analyze it in detail as we review our options. We will decide on our next steps in due course, taking into account the interests of all parties involved. Meanwhile, Chaitanya India and Navi Group remain committed and steadfast in their mission of providing customers with simple, affordable and accessible financial products and services,” said a Navi spokesman.

Ankit Agarwal, MD of NFS said: “The forthcoming NCD issuance aims to raise funds for onward and funding purposes. This will further diversify our borrowing profile and add more retail investors to our portfolio to complement our broad base of institutional partners.”

Investors would be given the opportunity to participate in secured NCDs across a range of 18-month and 27-month maturities with effective yields of up to 9.80% and a minimum application size of £10,000, he added.

The company’s mission was to provide financial products that are simple, affordable and accessible, said Mr. Bansal, NFS chairman and CEO. “I believe our client-centric and technology-centric approach, combined with our robust underwriting and collections capabilities, will add value to Navi Finserv’s first public debt issuance,” he added.

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